West Fraser Approved Commencement of Substantial Issuer Bid

SEATTLE (Scrap Monster): Vancouver-based West Fraser Timber Co. Ltd. announced that its board of directors has given approval for the commencement of a substantial issuer bid. Accordingly, the company will offer to purchase from shareholders for cancellation of up to C$1 billion of its outstanding common shares.

The offer will commence on July 12, 2021 and expire on August 17, 2021. The repurchases of shares will be funded through available cash on hand. Though the offer is denominated in C$, the shareholders will have an option to elect to receive the payment in C$ or US$. The offer will be conducted through a “modified Dutch auction” procedure, said the company press release.

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After expiry, the company will determine the lowest purchase price, not less than C$85 per share and not more than C$98 per share, upon the condition that aggregate purchase price does not exceed C$1.0 billion. If shares with an aggregate purchase price of more than C$1.0 billion are properly tendered and not properly withdrawn, the shares will be purchased on a pro-rata basis.

The offer will be for up to almost 10% of the total number of issued and outstanding shares on a non-diluted basis. It is optional for all shareholders.

The company has engaged Computershare Investor Services Inc. to act as depository for the offer.