Sumitomo acquires stake in Canadian wood pellet manufacturer

Sumitomo Corporation has acquired effective control of the wood pellet manufacturer Pacific BioEnergy Corporation (PBEC) and made its entry into the wood pellet manufacturing business in Canada. Effective control is exercised via a shareholder agreement and other key rights. The transaction involved a complex sale due to the seller’s/target’s broad ownership base, pre-closing reorganization, dissident shareholders and prescriptive rights held by a joint venture partner. Fasken Martineau advised Sumitomo Corporation on all aspects of the acquisition with a team led by Dierk Ullrich that included Don Dalik and Adrian Wan (M&A), KC Miu (Banking), Clayton Jones (Labour and Employment), Kareen Zimmer (Insurance), Grant Foster (Forestry), Kai Alderson (First nations and environmental), Ally Bharmal (IP), Tracey Cohen and Mark Pontin (Court approval and shareholder dissent issues); Mark Stinson (corporate/commercial).