B.C. billionaire Jim Pattison (centre) attends Vancouver Walk of Fame event with Premier John Horgan (right), Feb. 15, 2019. (B.C. government)

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.

BC legislature

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

A man wearing a mask against coronavirus walks past an NHS advertisement about COVID-19 in London, Tuesday, Feb. 2, 2021. (AP Photo/Alastair Grant)
92 new COVID-19 cases, no new deaths: Interior Health

The region is reporting 92 cases after the weekend

Shuswap Youth Launch Team members Claire Waite, Abbigail Paetsch, Mikayla Wilkinson, Brynn Gowen and Caillie Hay-Vicars pause for a picture on the day of the Shuswap Youth Launch interactive event, Thursday, Feb. 25. (Contributed)
Shuswap Youth Launch team over the moon with success of interactive event

Salmon Arm youth team invited to apply for $100,000 grant

City council passed resolution in support of an expansion of the licence area at Salmon Arm’s Marionette Winery for the inclusion of a lounge area. (Marionette Winery/Facebook)
City opts out of public hearing for lounge addition at Salmon Arm winery

Marionette Winery expanding licence area to host small gatherings

Fundraising continues to support the Larch Hills Nordic Society’s campaign to install six kilometres of lighting at the popular Shuswap cross-country ski area. (Brad Calkins photo)
Phase 1 of light installation at Shuswap’s Larch Hills to begin this spring

Fundraising efforts continue to illuminate six kilometres of trails at cross-country ski area

Island Health chief medical officer Dr. Richard Stanwick receives a first dose of Pfizer vaccine, Dec. 22, 2020. (B.C. government)
COVID-19: B.C. seniors aged 90+ can start to sign up for vaccination on March 8

Long-term care residents protected by shots already given

Langley resident Carrie MacKay shared a video showing how stairs are a challenge after spending weeks in hospital battling COVID-19 (Special to Langley Advance Times)
VIDEO: Stairs a challenge for B.C. woman who chronicled COVID-19 battle

‘I can now walk for six (to) 10 minutes a day’

Pastafarian Gary Smith, pictured here dressed as a pirate, wanted to wear his tricorn (also pictured here) in his driver’s licence photo, arguing that the display was a religious observance. Photo: Facebook
B.C. Pastafarian loses Supreme Court fight to wear pirate hat in driver’s licence photo

Gary Smith of Grand Forks, put his case to the Supreme Court in Rossland in early February

A student from Dawson Creek is the winner of Tolko’s Orange Shirt Day design contest for 2021. (Tolko photo)
Tolko contest features northern winner

Student from Dawson Creek beats out entries Canadawide for Orange Shirt Day design contest win

Provincial health officer Dr. Bonnie Henry updates B.C.’s coronavirus situation, May 8, 2020. (B.C. government photo)
B.C.’s weekend COVID-19 cases: 532 Saturday, 508 Sunday, 438 Monday

Fraser Health still has most, eight more coronavirus deaths

The Vernon Public Art Gallery's new Regional Reach program which sends supplies and lessons to classes, has been a hit in the North Okanagan classrooms. (VPAG photo)
Travelling art kit a hit in North Okanagan schools

Art Gallery’s new Regional Reach program delivers art education to the classrooms

A kaleidescope of colours was captured over Lake Country Sunday, Feb. 28. (Wendey Innes-Shaw photo)
Colourful close to month with North Okanagan sunset

From all angles: Vernon and Lake Country photographers capture sunset Feb. 28

Vernon’s Noric House long-term care facility’s COVID-10 outbreak has been declared over by Interior Health. (Jennifer Smith - Morning Star)
COVID outbreak at Vernon’s Noric House declared over

10 deaths were linked to the outbreak at long-term care facility

(File photo)
UBCO introduces another reading break in November

The break only affects the Okanagan campus

An injured skier was helivaced from Apex Mountain Resort to Kelowna General Hospital Monday, March, 2021. (Linda Geggie / Facebook)
Injured skier helivaced from Apex Mountain Resort

The skier was taken to Kelowna General Hospital

Most Read