Image Credit: The Canadian Press

By Doug Collins

Canfor purchase

Pattison closer to buyout of Canfor

Oct 29, 2019 | 5:15 AM

KAMLOOPS — It’s not a done deal yet, but businessman Jimmy Pattison is one step closer to acquiring full control of forestry giant Canfor.Canfor’s board has agreed to the plan based on the recommendation of an independent committee of board directors.

Pattison, who also owns this station, currently owns 51 percent of Canfor shares through his company Great Pacific Capital Corporation.

Global News reported last night the company would buy the remaining 40 percent at $16 pershare. The board says the deal would be a boon to shareholders in these times of declines in the benchmark price for both lumber and pulp. The board committee says the offer represents fair market value.

Great Pacific said in August taking the company private would eliminate significant administrative expenses and allow money to be put back in to stabilize Canfor, especially in B.C. where there is uncertainty.

The forestry sector in B.C. has been hard hit in recent years, with closures, layoffs and shift reductions across B.C. Canfor operations are included in those cutbacks.

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The Global News story says the deal needs to be approved by Canfor shareholders. A special meeting is tentatively set for December. There are some court approvals which will also need to be obtained.