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

Surrey RCMP say $14K in stolen phones recovered following investigation

Police say phones reportedly being sold on Facebook Marketplace

Semiahmoo First Nation declares local state of emergency

Parking lots, beach access on SFN lands closed due to COVID-19

Young Muslims offer helping hand to isolated residents throughout Lower Mainland

Neighbourhood Helper campaign aims to get help to people who can’t leave their homes

Regional parks in Delta closed for the long weekend

Boundary Bay and Deas Island parks closed ‘until further notice’ on Thursday, April 9

COVID-19: Daily update on the pandemic in Surrey, White Rock and beyond

APRIL 9: Abbotsford inmate diagnosed with COVID-19, temporary rent-supplement applications open

VIDEO: B.C. singer creates frontline workers tribute song

Cambree Lovesy’s song saluting those battling COVID-19 draws interest online

Researchers to study whether plasma of recovered patients can treat COVID-19

Plasma is the liquid portion of the blood that contains the antibodies that protect against illness

B.C., Alberta health ministers urge public to stay home Easter weekend

Regional politicians, online petition calling for closure of provincial border to non-essential traffic

Human rights complaint over city’s Pride flag tossed out

Kari Simpson’s attempt to block Langley City’s flag raising has failed

Abbotsford prison has confirmed COVID-19 case

Pacific Regional Treatment Centre is the third prison in B.C. in one week to confirm case

B.C.’s COVID-19 rent supplement starts taking applications

$300 to $500 to landlords for April, May and June if eligible

Canadian Olympian diagnosed with heart failure, possible exposure to COVID-19

Olympic soccer star Karina LeBlanc diagnosed with pleural effusion

B.C. unveils $5M for mental health supports during the COVID-19 pandemic

Will include virtual clinics and resources for British Columbians, including front-line workers

B.C. First Nations Health Authority launches virtual doctor program

Program to provide primary health care through COVID-19 pandemic

Most Read