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

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

(Black Press Media files)
UPDATE: Town of Smithers lifts alert for high levels of chlorine in water

Residents are advised town water is now safe to use

Garry Merkel has been recognized for his work in culturally appropriate Indigenous education with an honourary doctorate from the University of British Columbia.
Tahltan educator recognized with honorary doctorate from UBC

Garry Merkel has dedicated his life to improving Indigenous educational outcomes

Gareth Manderson, general manager BC Works, and Bandstra’s Zach Runions and Steve Collins. Photo supplied
Smithers family-owned business institution sold to publicly-traded company

Bandstra Transportation and Babine Trucking acquired by Mullen Group

B.C. Finance Minister Selina Robinson outlines the province’s three-year budget in Victoria, April 20, 2021. (B.C. government video)
B.C. deficit to grow by $19 billion for COVID-19 recovery spending

Pandemic-year deficit $5 billion lower than forecast

Canadian Prime Minister Justin Trudeau and United States President Joe Biden smile as they say farewell following a virtual joint statement in Ottawa, Tuesday, February 23, 2021. THE CANADIAN PRESS/Adrian Wyld
Trudeau pledges to cut emissions by 40% to 45% by 2030, short of U.S. goal

Trudeau announced target during a virtual climate summit convened by U.S. President Joe Biden

MLA Shirley Bond, right, answers questions during a press conference at Legislature in Victoria, B.C., on February 19, 2019. THE CANADIAN PRESS/Chad Hipolito
Former B.C. gaming minister says she wasn’t told directly about dirty cash flowing to casinos

Shirley Bond said Thursday civil forfeiture, gang violence and gambling addiction were also major concerns in 2011

RCMP Constable Etsell speaks to tourists leaving the area at a police roadblock on Westside Road south of Fintry, B.C., Thursday, July 23, 2009. THE CANADIAN PRESS/ Yvonne Berg
B.C. police say they take ‘exception’ to conducting roadblocks limiting travel

Asking the police to enforce roadblocks exposes officers to further risk and possible COVID-19 infections, says federation president Brian Sauve

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
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

As part of the province’s strategy to combat the opioid overdose crisis, take-home naloxone kits have been distributed throughout the province. (Courtesy of Gaëlle Nicolussi)
Vancouver Island could be at its worst point of overdose crises yet: medical health officer

Island Health issued overdose advisories for Victoria, various communities in the last two weeks

BC Hydro released a survey Thursday, April 22. It found that many British Columbians are unintentionally contributing to climate change with their yard maintenance choices. (Pixabay)
Spend a lot of time doing yard work? It might be contributing to climate change

Recent BC Hydro survey finds 60% of homeowners still use gas-powered lawnmowers and yard equipment

Journal de Montreal is seen in Montreal, on Thursday, April 22, 2021. The daily newspaper uses a file picture of Prime Minister Justin Trudeau dressed in traditional Indian clothing during his trip to India to illustrate a story on the Indian variant of the coronavirus. Paul Chiasson/The Canadian Press
Montreal newspaper blasted for front-page photo of Trudeau in India

Trudeau is wearing traditional Indian clothes and holding his hands together in prayer beside a caption that reads, ‘The Indian variant has arrived’

Nanaimo RCMP say a man was injured while pouring gunpowder on a backyard fire in Harewood on Wednesday, April 21. (File photo)
Nanaimo man hospitalized after pouring gunpowder onto backyard fire

RCMP investigating explosion in Harewood also came across a still for making alcohol on property

Most Read