VANCOUVER - Fortress Paper Ltd. (TSX:FTP) says its Landqart AG subsidiary has agreed to sell its hydropower assets and real estate to a Swiss utility company for an undisclosed price.
The Vancouver-based forestry company said late Monday that Landqart has also secured a long-term power purchase agreement in order to maintain power supply to its operations at competitive rates.
The sale of the assets is subject to regular closing requirements and is "anticipated to complete imminently."
"The sale of our non-core hydropower assets at Landqart is designed to optimize our current asset base and redirect proceeds to our core businesses, and is consistent with our strategy of unlocking value for our shareholders," said Chadwick Wasilenkoff, chairman and chief executive officer and president of Fortress Paper.
Fortress' security paper products business operates out of a Canadian mill as well as the Landqart Mill in Switzerland, where it produces banknote, passport, visa and other brand protection and security papers.
The company also operates a dissolving pulp business at the Canadian Fortress Specialty Cellulose Mill, which is in the process of expanding into the renewable energy generation sector with the construction of a cogeneration facility.