Domtar Repurchasing $150m Under Accelerated Share Repurchase

Domtar Corporation UFS today announced that it entered into an accelerated share repurchase agreement with a third party. Under the ASR agreement, the Company is repurchasing $150 million of its common stock with available cash on hand. This ASR agreement was entered into pursuant to the Company's $600 million share repurchase program announced on May 4, 2011. Under the ASR agreement, the Company will pay $150 million to the third party in exchange for an initial delivery of 1,294,840 shares. The final number of shares to be repurchased under the ASR agreement will generally be based upon a discount to the daily volume-weighted average prices of the Company's common stock during the valuation period of the ASR, which can vary from 1 to 3 months. The resulting adjustment may affect the total amount expended by the Company or the aggregate number of shares it repurchases.