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Domtar splits 2-for-1 stock under 'due bill' procedures
31
May '14
Domtar Corporation announced that in accordance with the applicable rules of the Toronto Stock Exchange and the New York Stock Exchange, the "due bill" trading procedures of such stock exchanges will apply to Domtar's previously announced two-for-one stock split, which will take the form of a stock dividend whereby shareholders will receive one additional common share for each common share held. 
 
Shareholders on the record date of June 10, 2014 will be entitled to receive one additional share for every share they own on that date. As a result of the stock split, total shares of Company common stock outstanding will increase from approximately 32.5 million to 65 million.
 
A "due bill" is an entitlement attached to listed securities undergoing a corporate action, such as a share split. In this instance, the entitlement is to the share dividend. The common shares will trade on a "due bill" basis from two trading days prior to the record date (i.e., June 6, 2014) to the payment date (being June 17, 2014), inclusively (the "due bill period"). Any trades that are executed on the TSX or the NYSE during this period will be identified to ensure purchasers of Domtar's common shares receive the entitlement to the share dividend.
 
The common shares will commence trading on an "ex-dividend" basis on June 18, 2014, as of which date purchases of Domtar's common shares will no longer have an attaching entitlement to a stock dividend payment. The due bill redemption date will be June 20, 2014.
 
Shareholders do not need to take any action. Domtar's transfer agent will send to registered shareholders an advice under the direct registration system indicating the number of additional shares that they receive as a result of the stock split.
 
These additional shares will be held in book entry form and registered electronically in the transfer agent's recordkeeping system, unless a physical share certificate is requested by the registered shareholder. Beneficial owners with common shares held through a brokerage account will have their accounts automatically updated to reflect the share split.
 
As previously announced, the Company's subsidiary Domtar (Canada) Paper Inc. will redeem all of its outstanding exchangeable shares on or about June 2, 2014. As a result, the exchangeable shares will cease to be outstanding and the shares of Company common stock issued in exchange for the exchangeable shares will participate in the 2-for-1 stock split and all these shares will be entitled to receive the quarterly dividend.
 

Domtar Corporation


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