Canfor shareholders reject Jim Pattison’s takeover offer

Lumber company says offer had just 45% support from minority shareholders

Softwood lumber in Richmond, B.C. THE CANADIAN PRESS/Jonathan Hayward

Shares in Canfor Corp. fell more than 20 per cent after Great Pacific Capital Corp. failed to win the approval of the company’s minority shareholders and called off its plan to take the lumber producer private.

The company said based on shareholder votes cast by proxy ahead of a Monday deadline, the offer of $16 per share by the Jim Pattison Group company had just 45-per-cent support from the minority shareholders.

A special meeting of Canfor shareholders scheduled for Wednesday was cancelled.

Canfor shares were down $3.56 at $12.00 in early trading on the Toronto Stock Exchange. The stock had traded for $8.80 before Great Pacific made its offer on Aug. 10.

Great Pacific, which holds a 51-per-cent stake in Canfor, said the offer was within a range determined to be fair by a Canfor special committee and its advisers.

“Great Pacific looks forward to Canfor’s continued success and will continue to support the management and directors of the company,” the firm said.

The privatization offer required approval by a two-thirds majority vote by shareholders and a simple majority of the votes cast by shareholders after excluding any votes of Great Pacific and certain others.

READ MORE: Jim Pattison takeover offer ‘non-binding,’ Canfor cautions investors

Investment management firm Letko, Brosseau & Associates Inc., which controls about a 4.8-per-cent stake in Canfor, said in September that the offer was too low and planned to oppose the deal.

The Canadian Press

Like us on Facebook and follow us on Twitter

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Submissions accepted for Anonymous Art Show

Online exhibit hosted by Abbotsford Arts Council in November

Unofficial holidays: Here’s what people are celebrating for the week of Sept. 27 to Oct. 3

World Farm Animals Day, Drink Beer Day and Virus Appreciation Day are all coming up this week

Mission Mayor Pam Alexis to run for the NDP

Will take on Liberal Simon Gibson in the Abbotsford-Mission riding

VIDEO: Mounties looking to catch Chilliwack bike-riding teen groper

Man caught on video slapping the backside of girl near CSS riding a bicycle

Missing Chilliwack woman last seen on Wednesday

Friends and family concerned for Joy-Lynn Leon, 42, who was last seen Sept. 23 on Mary Street

QUIZ: Do you know what’s on TV?

Fall is normally the time when new television shows are released

Horgan, Wilkinson trade barbs over MSP premiums, health care at campaign stops

Horgan called a snap election for Oct. 24 earlier this week

VIDEO: COVID won’t dampen Lower Mainland woman’s Halloween spirit

Langley’s Tanya Reid posted video offering suggestions of how trick-or-treating might look for her

PHOTOS: 2nd calf in a month confirmed among Southern Resident killer whale pod

Center for Whale Research said they will eagerly await to observe the calf to evaluate its health

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

2 British Columbians arrested, 3 at large in massive Alberta drug bust

Eight people are facing 33 charges in what police have dubbed Project Incumbent

Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

97 distressed horses, cats and dogs seized from farm in Princeton

RCMP assisted as BC SPCA executed search warrant

Most Read