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

(file)
Two ejected from single vehicle crash in Seabird Island

Landing zone for medevac has been requested

(File photo)
Semi truck and car collide on Highway 1 near Popkum

Slow lane eastbound is now closed as crews wait for tow trucks

Treeplanters from Shakti Reforestation are adding to the forests of Mount Thom Park. (City of Chilliwack)
Treeplanting project in Mount Thom Park will keep Chilliwack forest resilient

So far they’ve planted 2,000 of 80,000 trees planned for popular park on Promontory

Fire damage is seen in the windows of an apartment on Yale Road on April 21, 2021 following a fire there the night before. (Jenna Hauck/ Chilliwack Progress)
Chilliwack Fire Dept. reminds people again to have working smoke alarms following 2nd blaze in 2 days

All six halls responded to bedroom fire in apartment on Yale Road above restaurant in Chilliwack

Bert Brink Wildlife Management Area was the site of illegally dumped drywall reported on April 19, 2021. (Michael Hill photo)
Another cache of dumped drywall in Chilliwack prompts suggestion to block access

Pile of drywall likely asbestos containing discarded in wildlife management area

A large crowd protested against COVID-19 measures at Sunset Beach in Vancouver on Tuesday, April 20, 2021. (Snapchat)
VIDEO: Large, police-patrolled crowds gather at Vancouver beach for COVID protests

Vancouver police said they patrolled the area and monitored all gatherings

Thousands have converged in Whonnock Lake Park to enjoy the nice weather. (Roxanne Hooper/The News)
Thousands enjoy B.C. park with warnings about social distancing

Portable toilets installed in anticipation of nice weather

FILE – The Instagram app is shown on an iPhone in Toronto on Monday, March 19, 2018. THE CANADIAN PRESS/Graeme Roy
Judge acquits B.C. teen boy ‘set up’ on sex assault charge based on Instagram messages

The girl and her friends did not have ‘good intentions’ towards the accused, judge says

Kai Palkeinen recently helped a car stuck on the riverbed near the Big Eddy Bridge. While the car could not be saved, some of the driver’s belongings were. It’s common for vehicles to get stuck in the area due to significantly changing river levels from Revelstoke Dam. (Photo by Kai Palkeinen)
“I just sank a car’: Revelstoke resident tries to save vehicle from the Columbia River

Although it’s not permitted, the riverbed near the city is popular for off roading

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

Playland at the PNE is set to reopen this May, with COVID-19 health and safety measures approved by the province. (Website/Playland)
VIDEO: Playland at PNE scheduled to reopen this May to masked customers

British Columbians are discouraged from travelling outside of their local health authority to visit the theme park

Meng Wanzhou, chief financial officer of Huawei, walks down the street with an acquaintance after leaving B.C. Supreme Court during a lunch break at her extradition hearing, in Vancouver, B.C., Thursday, April 1, 2021. A judge is scheduled to release her decision today on a request to delay the final leg of hearings in Meng Wanzhou’s extradition case. THE CANADIAN PRESS/Rich Lam
B.C. judge grants Meng Wanzhou’s request to delay extradition hearings

Lawyers for Canada’s attorney general had argued there is no justification to delay proceedings in the case

B.C. Premier John Horgan announces travel restrictions between the province’s regional health authorities at the legislature, April 19, 2021. (B.C. government photo)
B.C. sees 862 more COVID-19 cases Wednesday, seven deaths

Recreational travel restrictions set to begin Friday

B.C. Finance Minister Selina Robinson is photographed following her budget speech in the legislative assembly at the provincial legislature in Victoria, Tuesday, April 20, 2021. THE CANADIAN PRESS/Chad Hipolito
B.C. budget lacks innovative drive, vision during uncertain times, say experts

Finance Minister Selina Robinson’s budget sets out to spend $8.7 billion over three years on infrastructure

Most Read