August 17, 2001 No. 2001-221
PACIFICA PAPERS INC.
PLAN OF ARRANGEMENT AND ELECTION
TRADING AND SETTLEMENT RULES
SYMBOL: PPP CUSIP: 694940 10 7
Reference is made to Exchange Daily Record Bulletin 2001-0994 dated August 15,
2001 which outlines a proposed Plan of Arrangement between Pacifica Papers Inc.
("Pacifica") and Norske Skog Canada Limited ("Norske") which, if effective, would result
in Norske (Symbol: NS.A) acquiring Pacifica. If the arrangement is completed (planned
for August 27, 2001), shareholders will receive, as consideration for each Pacifica
common share held, at the election of each shareholder:
i) 2.1 Class A common shares of Norske (the "Share Default" option"); or
ii) 1 Class A common share of Norske and a cash payment of $7.50 (the "Cash and
Share" option).
In order to receive the Share Default option or the Cash and Share option set out
above, Pacifica shareholders must duly complete and execute the Letter of Transmittal
and Election Form mailed on or about May 10, 2001 with the Information Circular
regarding the plan of arrangement and forward the Letter of Transmittal and Election
Form so completed together with their certificates representing Pacifica common shares
to CIBC Mellon Trust Company (“CIBC Mellon”) in Toronto to be received there no later
than 5:00 p.m. (Toronto time) on Friday, August 24, 2001. A shareholder who wishes to
receive the Cash and Share option must make an election for such consideration. A
shareholder who does not properly elect will be deemed to have elected to receive the
Share Default option set out above. Please refer to Exchange Daily Record Bulletin
2001-0994 for further details of the plan of arrangement.
The election deadline is 5:00 p.m. (Toronto time), Friday, August 24, 2001 (the
"Election Deadline"). Any shareholder who does not properly elect the Cash and
Share option by the Election Deadline will be deemed to have elected to receive the
Share Default option in respect of all common shares held by such shareholder.
Participating Organizations will note that the following trading and
settlement rules will only apply to purchase orders specifically entered as
‘CASH’ which are made for the purpose of electing the Cash and Share
option. Orders not specifically entered as ‘CASH’ will settle on a regular
basis.
The following trading and settlement rules will apply:
1. Purchasers of the shares on August 22 and August 23, 2001 who wish to elect the
Cash and Share option pursuant to the Plan must place their purchase orders on
a cash delivery basis for next day settlement.
2. Purchasers of the shares on August 24, 2001, who wish to elect the Cash and Share
option pursuant to the Plan must place their purchase orders from 9:30 a.m. to
12:00 noon for cash same day settlement.
3. Should fail positions exist, those purchasers who have failed to receive are required
to contact before 2:00 p.m. on August 24, 2001 Participating Organizations who
have failed to deliver, so that it can be determined how the fail positions are to be
closed out.
Investors should contact their broker for information or advice on their investment.
Participating Organizations who require additional information on the above settlement
rules should direct their questions to Olga Huntly at the TSE, 416-947-4518.
LEONARD PETRILLO
VICE PRESIDENT
GENERAL COUNSEL & SECRETARY
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