West Fraser Timber Approved a Substantial Issuer Bid
The offer is denominated in US dollars and shareholders will receive the payment in US dollars.
SEATTLE (Scrap Monster): West Fraser Timber Co. Ltd. announced that its Board of Directors has approved a substantial issuer bid. Accordingly, the company will offer to purchase from shareholders for cancellation of up to $1.25 billion of its outstanding common shares.
The offer tender price ranges from $80 to $95 per share, which represents 1% discount to 17% premium over the volume-weighted average price of its shares on the NYSE over the past 20 trading days. The offer will be executed by way of a “modified Dutch auction” procedure.
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The offer is denominated in US dollars and shareholders will receive the payment in US dollars. Meantime, Canadian shareholders will have an option to receive their payment in Canadian dollars. The offer will commence on 26th April, 2022 and expire on 2nd June, 2022, the company press release said.
The offer will be for up to approximately 15% of the total number of issued and outstanding Shares on a non-diluted basis. It is optional for all shareholders. The shareholders who do not deposit their shares will realize a proportionate increase in their equity interest, to the extent that shares are purchased under the offer.
West Fraser has engaged Computershare Investor Services Inc. to act as depository for the offer.