Deltic Timber Corporation (DEL) Hits 52-Week High

Tuesday, 24 Oct, 2017

The combined company will have 1,500 employees.

The corporate headquarters will be maintained in Spokane, Washington, with the southern operational headquarters located in El Dorado, Arkansas. Southeastern Asset Mngmt Tn invested in 1.83M shares or 1.5% of the stock. The total value of its holdings increased 55.6%. Covey said Potlatch approached Deltic Timber several months ago to discuss a possible deal. Former President Ray Dillon retired in October 2016 after 13 years with the company. He told investors on Monday that he expects more activity out of south Arkansas forests and mills.

"Together, we can realize significant productivity improvements by sharing best practices across both businesses, implementing optimal silvicultural practices, increasing harvest levels and improving lumber manufacturing volumes". About 85,669 shares traded or 25.62% up from the average. Deltic shareholders will receive 1.8 common shares of Potlatch for each share held. Credit Suisse Ag reported 5,296 shares. "That's what Potlatch is thinking".

Potlatch Chief Operating Officer Eric Cremers said the company also hopes to expand Deltic's real estate arm.

According to the release, leadership for the new company will come from both Potlatch and Deltic. The deal still must be endorsed by shareholders of both companies, meet all closing conditions and be approved by regulators. The Firm is engaged in the growing and harvesting of timber and the manufacturing and marketing of lumber and medium density fiberboard. The company has market cap of $1.16 billion. As part of the REIT conversion process, Deltic's accumulated earnings and profits, which are estimated to be approximately $250 million, will be distributed to stockholders of the combined company through a dividend consisting of 80 percent stock and 20 percent cash by the end of 2018. Benson, of Potlatch, said it's too early to determine whether there will be any job losses in the merger but that the majority of workers will be unaffected.

The transaction is expected to close in the first half of 2018. PotlatchDeltic will trade on the Nasdaq with the ticker symbol PCH.

Anna Torma, a spokesperson for Deltic, said in an email that the company is excited about the merger and the fact that a presence will be kept in El Dorado. In 1996, Murphy Oil split off its timber assets into a separate company. State Of Tennessee Treasury Department has invested 0% in Deltic Timber Corp (NYSE:DEL). It increased, as 9 investors sold Deltic Timber Corp shares while 21 reduced holdings.

The president and CEO of Deltic, John Enlow, will serve as vice chairman of the new company.

Mike Covey, Potlatch's chairman and CEO, said the proposed merger "unites two great timber companies". PotlatchDeltic's board of directors will be made up of eight directors from Potlatch and four directors from Deltic.

Potlatch Corp. has timberland in Alabama, Arkansas, Idaho, Minnesota and Mississippi.

Importantly for Deltic, it will convert its tax structure to be a Real Estate Investment Trust rather than a C-corporation, enabling it to avoid certain federal income taxes.

Deltic Timber Corporation also declared a dividend for shareholders that will be paid on Monday the 18th of December 2017.

BofA Merrill Lynch was the financial adviser for Potlatch, while Goldman Sachs & Co LLC was advising Deltic.