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

Voter’s Guide for Cowichan-Malahat-Langford

Check out our voter’s guide for tomorrow’s federal election: Image across page,… Continue reading

VIDEO: Climate change, veterans, tax cuts: it was all there at Lake Cowichan all-candidates debate

All six candidates faced off in the final Cowichan Valley debate of this federal election season

Cowichan T-Birds finish 5th at Bridgman Cup

Cow High contends at Victoria’s prestigious field hockey tournament

Drivesmart column: Glaring fog lamps

I agree with this reader, I also find many fog lamps unreasonably bright

Providence pumpkin patch open Oct. 18 for U-pick

For the first time ever, the folks at Providence Farm therapeutic community… Continue reading

Environment Canada issues gale warnings for western Vancouver Island

Gale warnings in effect for most of Vancouver Island and west coast Mainland

BC Ferries crew member taken to hospital after getting struck by bow doors

Two sailings between Horseshoe Bay and Departure Bay were cancelled

Greta Thunberg meets with First Nations chief in Fort McMurray

Thunberg has turned her protest against climate change into a global movement

Canucks hang on for 3-2 win over Rangers in New York

Vancouver scores three times in first period

More beef products recalled due to possible E. coli contamination

The food safety watchdog has been investigating possible E. coli 0157:H7

B.C. VIEWS: How to get the best deal on your ICBC car insurance

ICBC slowly being dragged into the 21st century

Most Read