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

Racism not cricket in Courtenay

New permanent Canadian resident speaking out after shouted slur interrupts cricket game

RCMP combing poor-quality video in wake of machete attack on senior

Bob Plumb attack: Comox Valley police “150 per cent on this one” inspector says

Hearings begin as Vancouver Island mom fights for allegedly abducted daughter

Tasha Brown now in Jersey in the British Isles, fundraiser being held in Nanaimo

Donor with rare genetics needed to help treat cancer-stricken Vancouver Island man

Jeremy Chow is half Canton Chinese, half British and needs a donor with a similar ethnic background

250 and counting: Greater Victoria leads Canada in Little Free Libraries

Capital now has the highest density of mapped little libraries in the country

VIDEO: Could we BE any more excited? ‘Friends’ fans go crazy for merch

Movie theatres will show select episodes to mark the NBC series’ 25th anniversary

Vancouver Island RCMP hunt for man after pair of indecent exposure incidents

Elderly Qualicum Beach woman grabbed by man who had been masturbating in the woods

Bodies of two missing Surrey men found near Ashcroft

Ryan Provencher and Richard Scurr have been missing since July 17

Police find shoes, backpack of the man found dead in Saanich

Officers credit public’s help, continue to seek information

Man who stole and burned U.S. politician’s portrait has manuscript he wrote in prison stolen in Nanaimo

Jeff Thomas Black stranded after passport and other items taken while he was sleeping downtown

Five hedgehogs quickly adopted after being left at BC SPCA

Lucky new owners picked up their pets from Maple Ridge branch on Aug. 20

Police seize drugs, replica firearms and $50,000 in cash after searching Victoria home

A property in the 600-block of Manchester Avenue is focus of investigation

Groovy B.C. wedding a throwback to Woodstock ‘69

Couple hosts themed wedding 50 years after legendary festival

Most Read