B.C. billionaire makes bid to privatize lumber giant Canfor

  • B.C. billionaire makes bid to privatize lumber giant Canfor

B.C. billionaire makes bid to privatize lumber giant Canfor

Great Pacific already owns about a 51 per cent stake in the lumber producer.

The Canfor statements reads: "Canfor cautions its shareholders and potential investors that the indicative offer is non-binding on Great Pacific and there can be no certainty that the indicative offer or other strategic transaction with Great Pacific or any other person will be pursued by Canfor, supported by Canfor's board of directors or ultimately completed".

Canadian forestry company Canfor Corporation has received an offer from Great Pacific Capital Corporation. Pattison is already a major shareholder of Canfor and West Fraser Timber, two of the companies that are struggling through a downturn in their B.C. forest products operations.

Pattison, whose empire encompasses supermarkets, fisheries and billboards, offered to buy the stocks of Canfor it does not already own for $981.6 million, for $16 apiece - an 82 per cent premium to the stock's closing price on Friday.

Following the Special Committee's review of the Indicative Offer and the receipt of financial and legal advice, Canfor will be in position to respond to the statements made by Great Pacific in its August 11, 2019 press release, should Canfor determine it is appropriate to do so.

Shares in Canfor closed at $8.80 on the Toronto Stock Exchange on Friday.

"Great Pacific believes the proposed transaction offers fair value for the shares, is a significant opportunity for the company's minority shareholders and is in the best interests of the company and its stakeholders".

Canfor is considered one of the world's largest forestry companies. The combination has forced British Columbia producers to curtail and shutdown production at various mills. Only recently, the company entered the European market by acquiring a 70 per cent majority stake in Swedish Vida Group.