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

Oak Bay High voting station was slow and steady for the provincial election day, Oct. 24, 2020. (Travis Paterson/News Staff)
Early voting reduces election day turnout in Oak Bay-Gordon Head

An estimated 15,918 mail-in ballots requested in Oak Bay-Gordon Head

Drive up voting is popular with Victoria-Swan Lake voters at the Craigflower elementary polling station. (Don Descoteau/News Staff)
Drive up voting popular at Craigflower polling station in Victoria-Swan Lake

Nearly 13,000 mail-in ballots were requested in the Victoria-Swan Lake riding

Polls close at 8 p.m. in the Esquimalt-Metchosin riding. (Katherine Engqvist/News Staff)
VIDEO: Esquimalt-Metchosin candidates reflect on campaign as polls close

An estimated 12,000 mail-in ballots were requested in the Esquimalt-Metchosin riding

This was the line-up outside Sidney’s Mary Winspear Centre at around 2:30 p.m. Saturday. The short-up line speaks to the high number of votes, which have already been cast against the backdrop of COVID-19 by mail or in advanced voting. Voters, however, unanimously praised the safety measures in place, as well the convenience of the polling stations. (Wolf Depner/News Staff)
‘Slow’ turnout at polls across Saanich North and the Islands

Peter Mason, district electoral officer, expects about 10,000 ballots to be cast

Barb Wright and Cynthia Vance at the District Electoral Office for the Langford-Juan de Fuca (Kendra Crighton/News Staff)
Polls now closed in Langford-Juan de Fuca

An estimated 12,120 mail-in ballots were requested in the Langford-Juan de Fuca riding

B.C. provincial health officer Dr. Bonnie Henry gives a daily briefing on COVID-19 cases at an almost empty B.C. Legislature press theatre in Victoria, B.C., on March 25, 2020. (Don Craig/B.C. government)
B.C. sees 223 new COVID-19 cases, now 2,009 active

Two new care home outbreaks in Surrey, Burnaby

Canada’s Chief Public Health Officer Theresa Tam responds to a question during a news conference Friday October 23, 2020 in Ottawa. Canada’s top physician says she fears the number of COVID-19 hospitalizations and deaths may increase in the coming weeks as the second wave continues to drive the death toll toward 10,000. THE CANADIAN PRESS/Adrian Wyld
Canada’s top doctor warns severe illness likely to rise, trailing spike in COVID-19 cases

Average daily deaths from virus reached 23 over the past seven days, up from six deaths six weeks ago

White Rock RCMP Staff Sgt. Kale Pauls has released a report on mental health and policing in the city. (File photos)
White Rock’s top cop wants to bill local health authority for lengthy mental-health calls

‘Suggestion’ included in nine-page review calling for ‘robust’ support for healthcare-led response

Anyone with information on any of these individuals is asked to call 1-800-222-TIPS (8477) or visit the website victoriacrimestoppers.ca for more information.
Greater Victoria Crime Stoppers wanted list for the week of Oct. 20

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

100 Mile Conservation officer Joel Kline gingerly holds an injured but very much alive bald eagle after extracting him from a motorist’s minivan. (Photo submitted)
B.C. driver thought he retrieved a dead bald eagle – until it came to life in his backseat

The driver believed the bird to be dead and not unconscious as it turned out to be

A Le Chateau retail store is shown in Montreal on Wednesday July 13, 2016. Le Chateau Inc. says it is seeking court protection from creditors under the Companies’ Creditors Arrangement Act to allow it to liquidate its assets and wind down its operations.THE CANADIAN PRESS/Ryan Remiorz
Clothing retailer Le Chateau plans to close its doors, files for CCAA protection

Le Chateau said it intends to remain fully operational as it liquidates its 123 stores

Green party Leader Sonia Furstenau arrives to announce her party’s election platform in New Westminster, B.C., on October 14, 2020. THE CANADIAN PRESS/Jonathan Hayward
B.C. Green party says it’s raised nearly $835,000 in 38 days

NDP Leader John Horgan is holding his final virtual campaign event

U.S. border officers at the Peace Arch crossing arrested two men on California warrants this week. (File photo)
Ottawa predicts system delays, backlogs unless court extends life of refugee pact

Canada and the United States recognize each other as safe places to seek protection

BC Liberal leader Andrew Wilkinson,  BC NDP leader John Horgan and BC Green leader Sonia Furstenau. (File)
B.C. VOTES 2020: Climate change and sustainability promises from the parties

Snap election has led to a short campaign; here’s the lowdown on the platforms

Most Read