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

Revelstoke RCMP hand out 59 tickets during driving enforcement campaign

Between Jan. 16 and 19 they handed out 21 speeding relative to conditions tickets

Avalanche closure scheduled, more snow on the way

Roads and weather for Revelstoke Jan. 20

Remembering Revelstoke Ski Club’s long history

The club continues today with more than 130 skiers

Poll suggests some don’t think Canada should send troops to stop genocide

The findings are being released just before the 75th anniversary of the liberation of Auschwitz

Snowy softball in Sicamous

The 2020 snowpitch tournament took place at Finlayson Park on Jan. 18 and 19.

Secondary dwellings in North Okanagan’s ALR not banned: Ministry

Provincial changes require additional approval for mobile, manufactured homes on farmland in RDNO

Investigation into highway barriers between Summerland and Peachland

Petition to install barriers garners nearly 15,000 signatures in just days

B.C. woman crowned the fastest female marathon runner in Canadian history

Malindi Elmore ran an incredible 2:24:50 at the Houston Marathon

Queen Silver Star’s top royal talents revealed

Three candidates named finalists following talent showcase

Alberta bulldog breeder ordered to give refund to B.C. buyer due to puppy’s behaviour

Tribunal ruled a verbal agreement to send a new dog superseded the written contract

Telus invests in North Okanagan youth’s mental health

$10K grant will go towards in-class education, reducing stigma

Most Read