B.C. billionaire Jim Pattison (centre) attends Vancouver Walk of Fame event with Premier John Horgan (right), Feb. 15, 2019. (B.C. government)

Jim Pattison takeover offer ‘non-binding,’ Canfor cautions investors

B.C. billionaire already big shareholder in forest industry

B.C. billionaire Jim Pattison’s offer of $16 a share may be about twice the current market value of forest company Canfor Corp., but it’s not a done deal, the company’s board says.

Canfor issued a statement Sunday night after Pattison’s holding company Great Pacific Capital Corp. announced its bid to buy the remaining shares of Canfor and take it private. Pattison is already a major shareholder of Canfor and West Fraser Timber, two of the companies that are struggling through a downturn in their B.C. forest products operations.

“Canfor cautions its shareholders and potential investors that the indicative offer is non-binding on Great Pacific and there can be no certainty that the indicative offer or other strategic transaction with Great Pacific or any other person will be pursued by Canfor, supported by Canfor’s board of directors or ultimately completed.”

Pattison, the 90-year-old investor whose holdings include grocery chain Save-on-Foods, real estate, insurance, broadcasting and other assets, has a history of long-term investing. In a statement, Great Pacific says it already owns 51 per cent of Canfor shares.

“Great Pacific’s ability to complete the proposed transaction is not subject to financing or due diligence and provides immediate liquidity for minority shareholders,” the statement says.

RELATED: Canfor buys majority stake in Swedish sawmills

RELATED: West Fraser announces shutdowns at five B.C. mills

The offer comes at a difficult time for the B.C. forest industry, with temporary or permanent mill closures across the Interior. Operators point to shortages of logs in the wake of B.C. beetle infestations, a slump in North American lumber prices, pressure from the latest round of import penalties imposed by the U.S. government, and high costs and stumpage fees imposed on Crown land timber.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

Retired Nanoose Bay teacher ‘Set for Life’ after $675K lottery win

Shannon plans to buy new sails for his sailboat

Country music star Aaron Pritchett back in Qualicum Beach to play benefit concert

Singer to headline Thalassa restaurant fundraiser for Ronald McDonald house

Qualicum school district sees utility costs go down

Capital funding opportunities promote clean energy and drive efficiencies

Order in the chambers: Qualicum Beach votes for council code of conduct

Coun. Robert Filmer’s motion passes unanimously at town meeting

Rainbow crosswalk in Qualicum Beach covered in mysterious black substance

‘It was disappointing to see this act of disrespect take place inside our community’

Ethnic media aim to help maintain boost in voting by new Canadians

Statistics Canada says new Canadians made up about one-fifth of the voting population in 2016

Speculation tax forces sale of Greater Victoria’s iconic ‘Tulip House’

Bob and Jan Fleming selling their retirement home famous for its thousands of tulips

New police force in Surrey must avoid VPD, RCMP errors made in Pickton case: Oppal

Boots are scheduled to be on the ground by spring 2021

Man at centre of dropped HIV-disclosure case sues province and 10 cops

Brian Carlisle of Abbotsford says Mission RCMP defamed him and were ‘negligent’ in their investigation

Striking Western Forest Products workers could lose benefits in September

Union, forest company at odds over Vancouver Island benefit payments as strike enters third month

Conan turns to the Property Brothers for tips on buying Greenland

Jonathan Scott suggests removing glaciers and mountains to bring in ‘more natural light’

Forests minister visits B.C. town rocked by multiple mill shutdowns

A third of Mackenzie turns out for rally, not much to cheer about

B.C. sockeye returns drop as official calls 2019 ‘extremely challenging’

Federal government says officials are seeing the same thing off Alaska and Washington state

Most Read