Canfor shareholders face acquisition vote
Canfor Corporation, the Vancouver, British Columbia-based softwood lumber producer, reported that an independent proxy conducted by advisory firms has recommended that company shareholders vote in favor of a proposed acquisition by Great Pacific Capital Corp.
The recommendation came from Institutional Shareholder Services and Egan-Jones Proxy Services.
Shareholders will have an opportunity to vote on the agreement at a special meeting on Dec. 18.
If approved by shareholders, Great Pacific Capital will take Canfor private. The company is currently traded on the Toronto Stock Exchange.
In a statement issued by Canfor, the manufacturer said that it “felt compelled to release the recommendations.”
Canfor Corporation (CNW Group/Canfor Corporation)
A third report issued by Glass, Lewis & Co. advised shareholders to vote against the arrangement. According to Canfor, the report issued by Glass, Lewis & Co. contains errors and omissions regarding the agreement. Canfor also said the report is “opinion based.”
Canfor’s Board of Directors, which conducted special studies about the deal, has also urged shareholders to approve the acquisition.
Under terms of the deal, Great Pacific Capital will pay 16 Canadian dollars (US$12.15) for each share it does not already own. Great Pacific and its owner, Canadian billionaire Jim Pattison, currently own 51% of Canfor.
In total, the deal is estimated to be valued at C$982 million Canadian dollars (US$731 million). The agreement reached with Great Pacific is a premium of approximately 81.8% to the closing price of the Canfor shares on Aug. 9, 2019, the last trading day prior to the announcement by Great Pacific and its offer to Canfor.
Sagging lumber prices and soft demand took their toll on Canfor resulting in the company curtailing and closing operations at numerous sawmills throughout 2019.
The recommendation came from Institutional Shareholder Services and Egan-Jones Proxy Services.
Shareholders will have an opportunity to vote on the agreement at a special meeting on Dec. 18.
If approved by shareholders, Great Pacific Capital will take Canfor private. The company is currently traded on the Toronto Stock Exchange.
In a statement issued by Canfor, the manufacturer said that it “felt compelled to release the recommendations.”
Canfor Corporation (CNW Group/Canfor Corporation)A third report issued by Glass, Lewis & Co. advised shareholders to vote against the arrangement. According to Canfor, the report issued by Glass, Lewis & Co. contains errors and omissions regarding the agreement. Canfor also said the report is “opinion based.”
Canfor’s Board of Directors, which conducted special studies about the deal, has also urged shareholders to approve the acquisition.
Under terms of the deal, Great Pacific Capital will pay 16 Canadian dollars (US$12.15) for each share it does not already own. Great Pacific and its owner, Canadian billionaire Jim Pattison, currently own 51% of Canfor.
In total, the deal is estimated to be valued at C$982 million Canadian dollars (US$731 million). The agreement reached with Great Pacific is a premium of approximately 81.8% to the closing price of the Canfor shares on Aug. 9, 2019, the last trading day prior to the announcement by Great Pacific and its offer to Canfor.
Sagging lumber prices and soft demand took their toll on Canfor resulting in the company curtailing and closing operations at numerous sawmills throughout 2019.