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 – A COVID-19 vaccine being prepared. (Olivia Sullivan/Sound Publishing)
B.C. seniors 80 years and older to get COVID vaccine details over next 2 weeks: Henry

Province is expanding vaccine workforce as officials ramp up age-based rollout

Interior Health reported 43 new COVID-19 cases in the region Feb. 23, 2021 and no additional deaths. (Jennifer Smith - Morning Star)
43 new cases of COVID reported in Interior Health

No new deaths, Williams Lake outbreak over

Students participating in an outdoor education experience in the Golden area during COVID-19. (Meg Langley photo)
Outdoor education project takes Golden’s students into nature

The program offers a way for students to learn in nature and safe from COVID

Symptoms can persist for weeks and even months after contracting COVID-19. (Dave Logan/For Peninsula Daily News)
What is considered a COVID recovery: the Physicians of Golden explain

A recovery is better explained as being “non-infectious” according to Larsen Soles.

This year’s Pink Shirt Day event will be held virtually with the Breakfast in a Box. (Okanagan Boys and Girls Clubs photo)
Pink Shirt Day 2021 kicks off with virtual event

“When you’re functioning from a place of kindness, there’s no way that bullying can exist.”

COVID-19 testing at the Vernon Health Services Unit. (Jennifer Smith - Vernon Morning Star)
Two Vernon high schools exposed to COVID-19

Vernon Secondary and Seaton were sent home notices yesterday of exposure event

Vancouver Canucks left wing Antoine Roussel (26) tries to get a shot past Edmonton Oilers goaltender Mike Smith (41) during second period NHL action in Vancouver, Tuesday, Feb. 23, 2021. THE CANADIAN PRESS/Jonathan Hayward
Canucks cough up 3-0 lead, fall 4-3 to visiting Edmonton Oilers

Vancouver falls to 8-13-2 on the NHL season

Jessica McCallum-Miller receives her signed oath of office from city chief administrative officer Heather Avison on Nov. 5, 2018 after being elected to Terrace City Council. McCallum-Miller resigned on Feb. 22, 2021, saying she felt unsupported and unheard by council. (Black Press Media File Photo)
Terrace’s 1st Indigenous councillor resigns citing ‘systemic and internalized racism,’ sexism

McCallum-Miller said in a Facebook post she felt unheard and unsupported by council

Temporary changes to allow for wholesale pricing for the hospitality industry were implemented June 2020 and set to expire March 31.	(Pixabay photo)
Pubs, restaurants to pay wholesale prices on liquor permanently in COVID-recovery

Pre-pandemic, restaurateurs and tourism operators paid full retail price on most liquor purchases

Summerland has received conditional approval for $6 million in federal funding to build a one-megawatt solar array to provide power to the community. (Stock photo)
Summerland council reaffirms solar project in 4-3 vote

Coun. Richard Barkwill had earlier written letters in opposition to initiative

Lake Country residents are warned about another rock slide on Pelmewash Parkway, Feb. 23, 2021. (Melanie Marie photo)
Rockslide on old Okanagan highway

Pelmewash Parkway once again littered with debris

Wade Dyck with Luna, a dog who went missing near the Chasm for 17 days following a rollover on Feb. 5. (Photo submitted).
Dog missing for 17 days through cold snap reunited with owner in northern B.C.

Family ecstatic to have the Pyrenees-Shepherd cross back home.

Most Read