Canfor owns and operates the sawmill in Grande Prairie (Photo: Shaun Penner)

By Shaun Penner

Canfor going Private

Canfor backing sale to Pattison owned firm

Oct 29, 2019 | 9:31 AM

Based on the direction given by an independent committee of its board of directors, the Canfor Corporation is backing the bid from Jim Pattison’s Great Pacific Capital Corp. to take the lumber production company private.

The arrangement agreement would see Great Pacific purchase the remaining shares of the corporation, which it did not already own, for $16 per share. Great Pacific already owns around 51% of the company’s shares.

The offer is at a significant premium to what shares were trading for at the time the original offer was made back in August, when prices at that time sat at $8.80. Canfor’s board of directors says that is a premium of 81.8%.

According to Greenhill and Co. Canada Ltd., an independent financial advisor, the offer is within the fair market value range of $14.24 to $19.38 per share.

With Great Pacific owning over 50% of the company’s shares, while having no intention of selling off the controlling interest of the company, Canfor’s board of directors indicated they had limited strategic alternatives to go with outside of this option.

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Canfor operates the sawmill here in Grande Prairie. Jim Pattison also owns Everything GP.