Great Pacific's Bid Offer to be Reviewed by Canfor's Special Committee

SEATTLE (Scrap Monster):  Canfor Corporation has responded to the unsolicited and non-binding cash offer for takeover received from billionaire Jim Pattinson owned Great Pacific Capital Corp. According to company release, it received the above mentioned cash offer on August 10, 2019.

The $981.7 million cash purchase deal offers $16 per share of Canfor’s stock, thereby acquiring 49% of the company’s share. This will give a total market capitalization of $2 billion for 125.22 million common shares of Canfor.

In its response, Canfor cautioned its existing shareholders and potential investors that the offer is non-binding and that the indicative offer or any other transaction with Great Pacific Capital or any other entity or person is not certain to be pursued by the company or approved by its board of directors.

ALSO READ: Canfor's Operating Loss Tapered to $50 Million in Q2

According to Canfor, it has constituted a special committee of independent directors to review the offer. The committee will consult with its legal and financial advisors on the proposal and consider Canfor’s strategic alternatives.

The company will be in position to respond to Great Pacific’s statement only after the review of the offer by the special committee and receipt of the financial and legal advice after pursuing the fairness of the proposed transaction. Incidentally, Great Pacific had stated that the offer presents a significant opportunity for the company’s minority shareholders and is in the best interests of Canfor and its stakeholders.

The offer by Great Pacific comes after acknowledging the challenges facing forestry sector and Canfor in particular.