Canfor might be sold and delisted

13 Aug 2019 − 

The Canfor Corporation is considered one of the world’s largest forestry companies. Now, one of its stakeholders has made an offer to acquire the whole company and take it private.

Canadian forestry company Canfor Corporation has received an offer from Great Pacific Capital Corporation. The latter company has proposed to acquire all of Canfor's outstanding common shares, which it does not already own, for a price of $16 per share. Great Pacific Capital currently has a 51 per cent stake in Canfor.

Canfor confirmed having received the offer and said it would review it and consider its strategic alternatives. However, the company emphasised that the offer was non-binding and that there was no certainty that it would be pursued by Canfor. A decision is planned to be made after completion of the review made by a special committee.

Great Pacific Capital's plans include delisting Canfor from the Toronto Stock Exchange, if the transaction is implemented. The company pointed out that taking Canfor private would eliminate significant administrative expenses and allow for reinvestment of these funds to stabilise the company's operations, especially in British Columbia.

Canfor is considered one of the world’s largest forestry companies. The company produces wood products, market pulp (NBSK) at three mills with a combined capacity of 1.1 million tpy as well as kraft paper with a capacity of 140,000 tpy. Canfor has approximately 6,300 employees. Only recently, the company entered the European market by acquiring a 70 per cent majority stake in Swedish Vida Group.

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