Lumber giant Canfor provides acquisition update
Canfor Corporation, the Canadian forest products company based in Vancouver, British Columbia, announced that a special committee of its board of directors is reviewing and evaluating the recent offer from Great Pacific Capital Corp.
Earlier this month, Canadian billionaire Jim Pattison made an offer to take Canfor private for about $981.6 million Canadian dollars (US$740.69 million). Pattison’s company, Great Pacific Capital Corp., already owns 51% of the Vancouver, British Columbia-based forest products company.
On Aug. 10, Pattison made a pitch to purchase the remainder of Canfor at a price of roughly C$16 per share (US$12.06) – roughly an 82% premium over Canfor’s closing price on Aug. 9.
The special committee has retained Osler, Hoskin and Harcourt LLP as its legal counsel. The special committee includes Canfor board members Conrad Pinette, John Baird, Barbara Hislop and J. McNeill Singleton. The committee has also retained Greenhill & Co., Canada, Ltd. as an advisor.
Canfor noted that “There can be no assurance that a transaction will be completed or on what terms.”
In 2019, Canfor has battled falling lumber prices, forcing the company to curtail or shut down lumber production operations in British Columbia. The company’s stock has fallen as much as 69% this year.
Canfor primarily produces softwood lumber. Several major lumber producers in British Columbia have cut back on sawmill operations this year due to a soft U.S. housing market and falling board prices.
Earlier this month, Canadian billionaire Jim Pattison made an offer to take Canfor private for about $981.6 million Canadian dollars (US$740.69 million). Pattison’s company, Great Pacific Capital Corp., already owns 51% of the Vancouver, British Columbia-based forest products company.
On Aug. 10, Pattison made a pitch to purchase the remainder of Canfor at a price of roughly C$16 per share (US$12.06) – roughly an 82% premium over Canfor’s closing price on Aug. 9.
The special committee has retained Osler, Hoskin and Harcourt LLP as its legal counsel. The special committee includes Canfor board members Conrad Pinette, John Baird, Barbara Hislop and J. McNeill Singleton. The committee has also retained Greenhill & Co., Canada, Ltd. as an advisor.
Canfor noted that “There can be no assurance that a transaction will be completed or on what terms.”
In 2019, Canfor has battled falling lumber prices, forcing the company to curtail or shut down lumber production operations in British Columbia. The company’s stock has fallen as much as 69% this year.
Canfor primarily produces softwood lumber. Several major lumber producers in British Columbia have cut back on sawmill operations this year due to a soft U.S. housing market and falling board prices.