Canfor Corporation has confirmed that it received on Saturday an unsolicited and non-binding proposal from Great Pacific Capital Corp. to take the company private.
Canfor operates a mill in El Dorado.
Great Pacific said it would be willing to acquire all outstanding common shares of Canfor (excluding those already directly or indirectly owned by Great Pacific) at a price of $160 per common share.
Canfor cautioned shareholders and potential investors that the offer is non-binding on Great Pacific and there can be no certainty that this or any other offer will be pursued or completed by Canfor.
Canfor’s Board of Directors will review the offer.
Both companies have their headquarters in Vancouver, British Columbia, Canada.
Great Pacific Capital Corp., a member of The Jim Pattison Group, said it owns approximately 51 percent of publicly-traded Canfor’s issued and outstanding shares.
“Great Pacific believes the proposed transaction offers fair value for the shares, is a significant opportunity for the company's minority shareholders and is in the best interests of the company and its stakeholders. Great Pacific's ability to complete the proposed transaction is not subject to financing or due diligence and provides immediate liquidity for minority shareholders,” Great Pacific said in a statement.
Great Pacific has proposed that the proposed transaction be structured by way of a court-supervised statutory plan of arrangement under Canadian law.
The arrangement would require a special resolution of the holders of shares to be approved by two-thirds of the shares represented in person or by proxy at a meeting of shareholders of the company.
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