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ABITIBI-PRICE ANNOUNCES ISSUE OF COMMON STOCK

 TORONTO, Aug. 12 /PRNewswire/ -- Abitibi-Price (NYSE: ABY) announced today that it has agreed, subject to regulatory approvals, to issue on or about September 8, 1993, eight to ten million common shares. With the price set at $12.75 per common share, the company expects to raise approximately C$100 million to C$125 million, depending on the quantity of shares issued.
 The offering is being underwritten by a syndicate led by Nesbitt Thomson Inc. The other members of the syndicate are Gordon Capital Corporation, RBC Dominion Securities Inc., Wood Gundy Inc., Salomon Brothers Canada Inc., Goepel Shields & Partners Inc., Burns Fry Limited, Midland Walwyn Capital Inc., Richardson Greenshields of Canada Limited, ScotiaMcLeod Inc., and Toronto-Dominion Securities Inc. Abitibi-Price will be filing shortly a short form preliminary prospectus with securities regulatory authorities.
 The proceeds from this issue will be used to replenish working capital and to repay short-term debt. Eileen Mercier, the company's chief financial officer, said, "Abitibi-Price has one of the healthiest balance sheets in the industry with a debt to total capitalization ratio below 25 per cent prior to this offering. The capital raised from this issue, like the debenture issue in March, will help us to further strengthen our balance sheet and our commitment to financial flexibility."
 Abitibi-Price, a major competitor in the global forest products industry, is a manufacturer and marketer of newsprint and uncoated groundwood papers. The company is a prominent distributor of office and information-processing products, as well as a converter of industrial goods and products for home, school and office use.
 The common shares have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.
 Abitibi-Price Inc.
 207 Queen's Quay West
 Suite 680, Box 102
 Toronto, Ontario M5J 2P5
 SYMBOLS: A (Toronto, Montreal and Vancouver stock exchanges)
 ABY (New York Stock Exchange)
 -0- 8/12/93
 /CONTACT: Jim Hone, vice president, treasurer, 416-369-6704 or Eileen A. Mercier, senior vice-president, finance, 416-369-6718/
 (ABY)


CO: Abitibi-Price Inc. ST: Ontario IN: PAP SU: OFR

TM -- NY092 -- 2327 08/12/93 17:39 EDT
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Publication:PR Newswire
Date:Aug 12, 1993
Words:358
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