No-Go On Proposed Purchase Of Canfor
Canfor Corp. has agreed with Great Pacific Capital Corp., a wholly-owned subsidiary of Great Pacific, to terminate a previously announced arrangement agreement that called for Great Pacific, which already owns 51% of Canfor, to purchase the remainder of the shares for nearly $1 billion.
Based on a vote of Canfor shareholders, the “majority of the minority” vote required under a “Protection of Minority Security Holders in Special Transactions” instrument, will not be achieved, coming up at least 5% short in votes.
The deal, which would have turned Canfor from a public company into a private one, appeared to have the momentum to reach fruition, with the board of directors recommending it following endorsement from various special committees and shareholder services.
The board had stated that the purchase price represented a significant premium over the existing share price, and that ongoing industry headwinds in the forestry sector had caused some instability in trading prices and in company operations, including multiple curtailments of sawmill production.
RELATED ARTICLES
Canfor Plans New Sawmill In Louisiana
Canfor’s Vida Group Buys Sweden Mills
Latest News
SFPA Expo Attracts Sawmillers
More than 180 exhibitors attended the Forest Products Machinery and Equipment Exposition produced by Southern Forest Products Assn. at the Georgia World Congress Center in Atlanta from June 24 to 26. The event, which is…
Forest Service Chief Applauds Momentum Of Mass Timber Market
USDA Forest Service Chief Vicki Christiansen joined with staff of the University of Idaho to break ground on a one-of-a-kind engineered wood arena. The 62,000-square-foot, 4,200-capacity facility will highlight Idaho’s wood products industry and will…
Tale Of Two Regions
This summer has started with a series of curtailment and closure announcements from several major lumber producers in Western Canada. Canfor is temporarily reducing production capacity in British Columbia by 200MMBF, curtailing operations at all…
Find Us On Social
Newsletter
The monthly Timber Processing Industry Newsletter reaches over 4,000 mill owners and supervisors.
Subscribe/Renew
Timber Processing is delivered 10 times per year to subscribers who represent sawmill ownership, management and supervisory personnel and corporate executives. Subscriptions are FREE to qualified individuals.
Advertise
Complete the online form so we can direct you to the appropriate Sales Representative.