Rayonier Advanced Materials Inc. on Sunday night announced an increase in the price of its merger agreement with Tembec Inc., to get the support of two large shareholders.
Oaktree Capital Management, which holds 19.9 percent of Tembec’s stock, and Restructuring Capital Associates, which holds 17.1 percent, both said they would vote against the buyout because the price was too low.
Jacksonville-based Rayonier AM will now pay either $4.75 in cash or 0.2542 shares of its stock for each share of Montreal-based Tembec.
The previous agreement called for Rayonier AM to pay either $4.05 in cash or issue 0.2302 shares of stock.
Rayonier AM said both Oaktree and Restructuring Capital agreed to vote in favor of the deal at the higher price.
Tembec shareholders are scheduled to vote on the deal at a special meeting Thursday in Montreal.