Canfor Corp. announced that based on the recommendation of an independent committee of Canfor’s board of directors (the “Special Committee”), it has entered into an “arrangement agreement” with Great Pacific Capital Corp. and affiliate Great Pacific in which Great Pacific and its affiliates, which already own 51% of Canfor, will acquire all of the Canfor shares it does not own for cash consideration of $16 per share.

The Special Committee reports that the deal represents a significant premium and is a compelling value proposition for the minority shareholders. “Ongoing industry headwinds in the forestry sector, including high log costs due to supply constraints and significant declines in benchmark price for both lumber and pulp, have had negative impacts on Canfor’s current financial results. It is unknown how long the challenging industry conditions may persist and uncertain when financial results may improve as a result of capacity rationalization in British Columbia,” the committee stated. “These challenging conditions have also led to volatility in the trading price of Canfor shares.”