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

Film crews took over Hawthorne Square Dec. 14 to shoot scenes from the TV series Flash. (Photo: Malin Jordan)
UPDATE: Cloverdale ‘Flash’ episode airs

TV series ‘Flash’ transported 176th Street back to 1998

Surrey forest trail, on Surrey Mound. (File photo: Tom Zytaruk)
OUR VIEW: Surrey should celebrate Earth Day every day, every week

Today – Thursday, April 22 – is Earth Day

Statue of Lady Justice at B.C. Supreme Court in New Westminster. (File photo: Tom Zytaruk)
Verdict to come down today in Surrey crash that killed Travis Selje

Accused testified she has no recollection of the crash and believes she had an epileptic seizure that caused the collision

A Morgan Creek resident has filed an official complaint against a blueberry farmer in the area. (Google image)
Morgan Creek couple files official noise complaint against blueberry farmer

Pair who recently moved to South Surrey say blasting fans keep them from sleeping

This map illustrates the number of active COVID-19 cases in Greater Vancouver from April 11 to 17, 2021. (BC Centre for Disease Control image)
Active COVID-19 cases in Delta down from previous high

241 cases April 11 to 17, second most since BC CDC began releasing weekly city-level data

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

Ambulance crews have been busy with a record number of emergency overdose calls this Wednesday, April 21. (BC Emergency Health Services)
B.C. paramedics responded to a record 138 overdose calls in a single day

Wednesday’s calls included 48 in the Vancouver Coastal Health region and 51 in Fraser Health

B.C. Health Minister Adrian Dix and Premier John Horgan describe vaccine rollout at the legislature, March 29, 2021. (B.C. government)
B.C. COVID-19 hotspots targeted as AstraZeneca vaccine runs low

17,000 appointments booked the first day for people aged 40 and up

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

(File)
Two injured in rollover crash near Agassiz

One treated for serious, non-life threatening injuries

Dresses hang outside Nelson city hall as part of the REDress Project by Métis artist Jaime Black. Photo: Bill Metcalfe
B.C. red dresses symbolizing missing, murdered Indigenous women vandalized a 2nd time

Nelson’s REDress Project was vandalized along with an outdoor installation on Vancouver Island

A nurse loads a syringe with a vaccine for injection at the Victoria Clipper Terminal. THE CANADIAN PRESS/Chuck Stoody
B.C.’s COVID-19 vaccine rollout not enough to bring back normal life by fall: report

Only 51% of the population will be protected under B.C.’s current rollout, SFU professors say more vaccinations are needed to achieve herd immunity

Letisha Reimer, 13, was killed Nov. 1, 2016 in a stabbing at Abbotsford Senior Secondary.
UPDATED: Second-degree murder conviction stands for Abbotsford school killer

Judge finds that Gabriel Klein is criminally responsible for death of Letisha Reimer

FILE – RCMP officers wearing face masks to curb the spread of COVID-19 stand by as protesters opposed to the Trans Mountain pipeline expansion block rail lines, in Burnaby, B.C., on Friday, November 27, 2020. THE CANADIAN PRESS/Darryl Dyck
‘Very scary’: B.C. travel rules too vague, shouldn’t involve police, civil liberties group says

BCCLA said that speaking with communities could have avoided top-down approach

Most Read