UPP plans to buy stake in Canadian firm linked to director

PAPER mill company UPP Holdings on Wednesday said it plans to buy a significant stake in a Canadian wood products manufacturer for some C$18.9 million (S$19.6 million) from two parties, one of which is linked to a director of UPP.

UPP plans to buy 58.3 per cent of a Canadian wood products manufacturer Taiga Building Products. This includes the 19.3 per cent of Taiga held by UPP's director Tong Kooi Ong. The other 39.1 per cent is to be bought from Berjaya Corporation. Taiga is listed on the Toronto Stock Exchange.

UPP expects to also spend C$52.9 million to buy a portion of Taiga's unsecured subordinated notes. These pay a coupon of 14 per cent.