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.

BC legislature

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Two causes to be heard on legislature lawn during B.C. budget unveiling

Demonstrations from forestry workers and Extinction Rebellion planned

Peninsula and Area Agricultural Commission criticizes Central Saanich over committee demise

PAAC also calls on municipality to revive ag committee disbanded earlier

Migration drives Greater Victoria’s population growth

Region surpasses 400,000 population despite seeing more deaths than births

Recent arrests skim surface of Victoria’s human trafficking problem

Port city makes desirable place for traffickers flying under the radar

Oak Bay looks into boulevard gardens

Legalizing boulevard gardening among working group ideas

VIDEO: Ottawa wants quick, peaceful resolution to pipeline protests, Trudeau says

The protests have manifested themselves as blockades on different rail lines across the country

Two causes to be heard on legislature lawn during B.C. budget unveiling

Demonstrations from forestry workers and Extinction Rebellion planned

No dramatic shifts expected as B.C. government tables new budget today

Finance Minister Carole James has promised to stay the course when she tables the budget in the legislature

AFN national chief calls for calm on Wet’suwet’en crisis, rail blockades

Hereditary chiefs in the Wet’suwet’en First Nation oppose the natural-gas pipeline

Federal, B.C. ministers seek meeting with Wet’suwet’en in hope of blockade solution

Coastal GasLink signed agreements with all 20 elected band councils along the pipeline route

Flight to evacuate Canadians from cruise ship ‘expected’ to depart Japan on Thursday

Canadians seeking to return to home by commercial means will be subject to the Quarantine Act

Canucks acquire forward Tyler Toffoli from Kings in push for playoffs

Vancouver sends Schaller, Madden, pick to L.A.

New highway proposed between Alberta and B.C.

The route would connect Red Deer to Kamloops

Most Read