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

Bob Rypma, left, and Jim Tiviotdale, former and current Kitimat Flying Club presidents, respectively, standing on the moss-covered runway at the Kitimat Air Park, which will be redone in the coming year thanks to a grant approved by the BC Airports Access Program. (Clare Rayment photo)
Kitimat Air Park to get major refurbishment, helipad

The club has been in the process of applying for the grant for two years, including two applications

WorkSafeBC is investigating after a death at a Kitimat concrete plant last Friday (Oct. 23) (Black Press file photo)
BC Coroners Service, WorkSafeBC investigating after death at Kitimat worksite

The fatality occurred last Friday (Oct. 23) and investigations into the incident are underway

Louise Avery is the longest serving Curator and Director at the Kitimat Museum. Here, she’s standing in front of the new Haisla Heritage Section, which they worked hard on with Haisla members and organizations to ensure it was an accurate and respectful display of artifacts.
In Our Valley: Louise Avery

Louise Avery has been the Director and Curator at the Kitimat Museum for over 24 years

Nechako Toastmasters member Eleanor Kendall performing a speech as Mrs. Claus at a meeting when they were still meeting in person, prior to the COVID-19 pandemic. (Wanda Shaw photo)
Turning fears into confidence: Kitimat Toastmasters go online amidst COVID-19

Nechako Toastmasters have moved virtual amidst COVID-19 restrictions

<em>Black Press file photo </em>
Clare’s Corner: Yes, love is strange — and an addiction

A little bit of love to help get you through those Monday blues

Provincial health officer Dr. Bonnie Henry arrives for briefing on the COVID-19 situation, B.C. legislature, Oct. 26, 2020 (B.C. government)
B.C. records 217 more COVID-19 cases, mask use urged

Infection spike continues, 21 senior facilities affected

Los Angeles Dodgers celebrate after defeating the Tampa Bay Rays 3-1 to win the baseball World Series in Game 6 Tuesday, Oct. 27, 2020, in Arlington, Texas. (AP Photo/David J. Phillip)
L.A. Dodgers beat Rays 3-1 to win 1st World Series title since 1988

National League champs claim crown in six games

Seven-year-old Aaliyah Rosa was found dead in an apartment in Langley in July. (Langley Advance Times files)
Child’s body cold, no pulse: Off-duty cop testifies in Langley mother’s murder trial

The seven-year-old girl’s mother faces a first-degree murder charge

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Tyrell Giroux was arrested by Williams Lake RCMP on Sunday, Oct. 25. (Facebook video screenshot)
Tsilhqot’in leaders call for suspension of officers seen in controversial Williams Lake arrest

Disturbing video demands an immediate, independent investigation, says TNG

People march during a climate strike in Montreal, Friday, Sept. 27, 2019. THE CANADIAN PRESS/Graham Hughes
Judge rejects 15 youths’ climate change lawsuit against Canadian government

Justice Michael Manson has granted the government’s motion to strike the plaintiffs’ claim

A woman walks through check in at WestJet at Pearson International airport during the COVID-19 pandemic in Toronto on Wednesday, Oct. 14, 2020. THE CANADIAN PRESS/Nathan Denette
Strong support for pre-flight COVID testing ahead of upcoming WestJet trial: YVR

Airport is partnering with UBC, which is helping choose the method of pre-flight testing

Prime Minister Justin Trudeau provides an update on the COVID pandemic during a press conference in Ottawa on Tuesday, Oct. 27, 2020. THE CANADIAN PRESS/Sean Kilpatrick
Trudeau says pandemic ‘really sucks,’ and that Christmas gatherings are up in the air

The prime minister encouraged residents to continue to follow the advice of local health authorities

The Williams Lake Indian Band is stipulating no-go zones for mushroom picking in areas burned by last summer’s wildfires. 100 Mile Free Press photo
Who controls mushroom harvesting on Indigenous lands?

‘We don’t necessarily know where the mushrooms grow, how old the stands need to be, those types of things.’

Most Read