Timberlands to Remain in Nova Scotian Hands
A tentative purchase agreement for Northern Pulp’s timberlands is in place following a court-ordered sales process and auction.
Tidnish Holdings Ltd., based in Oxford, will purchase the 173,000 hectares (427,000 acres) for $235 million. Proceeds from the sale will fulfil the 2024 settlement agreement between the Province and mill owner Northern Pulp Nova Scotia, protecting pensioners, preserving ongoing woodland operations and settling provincial debt repayment.
“We are pleased to know that Northern Pulp’s timberlands will be turned over to a Nova Scotia company that has deep roots in rural communities and the economy,” said Kim Masland, Minister of Natural Resources. “We will continue to have interest in how those lands remain available for forestry, though we have confidence they will provide economic and social benefits for generations.”
The Province is the backup bidder, with a commitment of $234 million, and is prepared to purchase the lands if the company is unable to close the deal.
The purchase agreement is subject to court approval, pending a hearing on Tuesday, December 16, in British Columbia Supreme Court.
Quick Facts:
the timberlands span six counties including Halifax, Pictou, Colchester, Cumberland, Guysborough and Hants
the purchased assets include the timberlands and nursery, bridge fabrication assets and contracts and permits
money from the sale will be allocated for expenses related to the sales process, interim financing for Northern Pulp’s operations since 2020, pension plan top-up, $15 million toward the Pictou County mill site, and repayment of provincial debts
the Province is expected to receive about $100 million when the sale closes as repayment of provincial debts
the settlement agreement also resulted in the $450 million lawsuit against the Province being dismissed
Additional Resources:
News Release – Nova Scotia Reaches Settlement with Paper Excellence Group, Sets New Path Forward: https://news.novascotia.ca/en/2024/05/23/nova-scotia-reaches-settlement-paper-excellence-group-sets-new-path-forward