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

Rio Tinto responds to U.S. aluminum import tariffs

The tariffs were imposed by President Donald Trump Aug. 6

The much-awaited Splash Park opens in Burns Lake

The Splash Park at the Radley Beach Park is finally open for… Continue reading

Brucejack mine fatality identified

Patrick Critch was from Newfoundland

Granisle receives $4.3 million funding for Wastewater Treatment plant upgrade

The village will finally get to upgrade the 49 years old plant

Spirit North Burns Lake conducting canoe, paddle board camp for indigenous kids

Rachelle van Zanten, the Community Program Director for the Burns Lake area… Continue reading

53 new COVID-19 cases, no new deaths cap off week of high infection rates in B.C.

Roughly 1,500 people are self-isolating because they either have COVID-19 or have been exposed to it

VIDEO: Internet famous Yukon-based bhangra dancer explores Vancouver Island

Gurdeep Pandher spreads joy through dance, forms cross-cultural connections amid pandemic

Unofficial holidays: the weird and wonderful things people celebrate around the world

On any given day of the year, there are several strange, silly or serious holidays to observe

Moving on: Tanev scores 11 seconds into OT as Canucks oust Wild

Vancouver beats Minnesota 5-4 to move into first round of NHL playoffs

Gene editing debate takes root with organic broccoli, new UBC research shows

Broccoli is one of the best-known vegetables with origins in this scientific haze

VIDEO: U.S. Air Force pilot does fly-by for B.C. son amid COVID border separation

Sky-high father-son visit plays out over White Rock Pier

3 Vancouver police officers test positive for COVID after responding to large party

Union president says other officers are self-isolating due to possible exposure

New mothers with COVID-19 should still breastfeed: Canada’s top doctor

Dr. Theresa Tam made the recommendation during World Breastfeeding Awareness Week

Collapse of Nunavut ice shelf ‘like losing a good friend:’ glaciologist

The ice shelf on the northwestern edge of Ellesmere Island has shrunk 43 per cent

Most Read