One of North America’s largest forestry firms is set to go private.
Canfor announced Monday that it is in favour of a nearly-billion dollar offer from a Jim Pattison Group company.
Great Pacific Capital Corporation, which already owns a 51 percent stake in Canfor, has offered $16 per share for the remaining shares it doesn’t already own.
Canfor’s board of directors has recommended accepting the deal, noting “ongoing industry headwinds in the forestry sector, including high log costs due to supply constraints and significant declines in benchmark price for both lumber and pulp,” which have hurt its bottom line.
B.C.’s forest sector has been hit hard, with mill closures, curtailments, and layoffs, including nearly all of Canfor’s operations.
While the company is in favour of the deal, shareholders will still have to give their blessing at a special meeting, tentatively set for December.
The deal is expected to close before the new year.
