Jim Pattison's $1 Billion Deal to Buy Canfor Corp. is Abandoned

SEATTLE (Scrap Monster):  The $1 billion deal offer from business giant Jim Pattison’s Great Pacific Capital Corporation to take control of Canfor Corporation has been called off. Consequently, Canfor will remain as a public company.

The offer of $16 per share by Great Pacific received only 45% support from the minority shareholders of Canfor. The offer required two-thirds majority votes by shareholders to get passed. Further to this, Canfor has cancelled the special meeting of shareholders scheduled for Wednesday, December 18, 2019.

The rejection of the offer comes despite support by special committee of Canfor’s Board to the offer. In fact, the special committee had listed out five specific reasons to the shareholders on why the offer should be accepted.

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Kevin Mason, managing director of ERA Forest Products Research commented that Great Pacific’s offer was too low. According to him, the offer was an attempt to pick up Canfor very opportunistically, which in turn has been rightly rejected by the company’s minority shareholders. It must be noted that Great Pacific currently owns 51% interest in Canfor Corporation.