The company has entered into an arrangement agreement with Great Pacific Capital Corp., owned by Jimmy Pattison. The agreement stems from a recommendation by an independent committee of Canfor’s board of directors.
Under the terms of the agreement, Great Pacific, which along with its affiliates owns approximately 51 per cent of the issued and outstanding common shares of Canfor, will acquire all of the Canfor Shares it does not already own for cash consideration of $16 per Canfor share by way of a statutory plan of arrangement under the Business Corporations Act.
“Over the last few months, with the assistance of the special committee’s independent financial and legal advisors, we have conducted a thorough evaluation of the best interests of Canfor and the fairness of Great Pacific’s proposal to shareholders,” said Conrad Pinette, chair of the special committee. “Following the conclusion of this evaluation, we are pleased to have reached an agreement with Great Pacific. The special committee believes that the transaction represents fair value for shareholders and is the correct path forward for Canfor, Canfor employees, communities and shareholders.”
The agreement represents a premium of approximately 81.8 per cent to the closing price of the Canfor shares on August 9, 2019 (the last trading day prior to the announcement by Great Pacific of its indicative offer for Canfor).