SJ Stella Jones Inc

NOT FOR RELEASE OVER US NEWSWIRE SERVICES OR DISSEMINATION IN THE US

Stella-Jones Inc. ("Stella-Jones" or the "Company") (TSX:SJ) announced today
that Stella-Jones and its principal shareholder, Stella Jones International S.A.
("SJ International"), have entered into an agreement with a syndicate of
underwriters (the "Underwriters") pursuant to which SJ International has agreed
to sell, and the Underwriters have agreed to purchase, on a bought deal basis,
2,000,000 of the Stella-Jones common shares held by SJ International at an
offering price of $42.00 per share. After giving effect to this offering, SJ
International will own 6,187,909 common shares of the Company, representing
approximately 38.8% of the outstanding common shares of the Company.
Stella-Jones will not receive any proceeds from this offering. The underwriting
syndicate is led by RBC Capital Markets.


"The offering will allow our principal shareholder to further diversify its
asset portfolio while maintaining a substantial ownership interest in the
company. From the other shareholders' perspective, this offering should increase
liquidity of our common shares by adding 2,000,000 common shares to our public
float without any dilution" said Brian McManus, Chief Executive Officer of
Stella-Jones.


A preliminary short-form prospectus relating to the offering will be filed
shortly with Canadian securities regulatory authorities. Closing of the offering
is expected to occur on or about February 6th, 2012 and is subject to certain
conditions, including the approval of the Canadian securities regulatory
authorities. 


This press release does not constitute an offer to sell or a solicitation of an
offer to buy any securities of the Company in any jurisdiction in which such
offer, solicitation of sale would be unlawful. These securities have not been
and will not be registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act") or any U.S. state securities laws and may
not be offered or sold in the United States except in compliance with the
registration requirements of the U.S. Securities Act and applicable U.S. state
securities laws or pursuant to an exemption therefrom. Any public offering of
the securities in the United States may only be made by means of a prospectus
containing detailed information about the Company and its management as well as
financial statements.


About Stella-Jones Inc.

Stella-Jones Inc. (TSX:SJ) is a leading producer and marketer of pressure
treated wood products. The Company supplies North America's railroad operators
with railway ties, timbers and recycling services; and the continent's
electrical utilities and telecommunications companies with utility poles.
Stella-Jones also provides industrial products and services for construction and
marine applications, as well as residential lumber to retailers and wholesalers
for outdoor applications. The Company's common shares are listed on the Toronto
Stock Exchange.


Forward looking statements

Except for historical information provided herein, this press release may
contain information and statements of a forward-looking nature concerning the
future performance of the Company. These statements are based on suppositions
and uncertainties as well as on management's best possible evaluation of future
events. Such factors may include, without excluding other considerations,
fluctuations in quarterly results, evolution in customer demand for the
Company's products and services, the impact of price pressures exerted by
competitors, the ability of the Company to raise the capital required for
acquisitions, and general market trends or economic changes. As a result,
readers are advised that actual results may differ from expected results.

Stella Jones (TSX:SJ)
Historical Stock Chart
From Jun 2024 to Jul 2024

Stella Jones (TSX:SJ)
Historical Stock Chart
From Jul 2023 to Jul 2024