Canadian Manufacturing

Canfor says privatization deal called off after failing to win support

A special meeting of Canfor shareholders scheduled for Wednesday has been cancelled

December 17, 2019  The Canadian Press

PHOTO: Lumber/Stewart Black via Flickr

VANCOUVER – Canfor Corp. says Great Pacific Capital Corp. has called off its plan to take the lumber producer private after the deal failed to win the approval of the company’s minority shareholders.

The company says based on shareholder votes cast by proxy ahead of a Monday deadline, the offer of $16 per share by the Jim Pattison Group company had just 45% support from the minority shareholders.

A special meeting of Canfor shareholders scheduled for Wednesday has been cancelled.

Great Pacific holds 51% stake in Canfor.

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The privatization offer required approval by a two-thirds majority vote by shareholders and a simple majority of the votes cast by shareholders after excluding any votes of Great Pacific and certain others.

Investment management firm Letko, Brosseau & Associates Inc., which controls about a 4.8% stake in Canfor, said in September that the offer was too low and planned to oppose the deal.