Canfor Responds to Great Pacific Capital Corp.’s Announcement of its Unsolicited Proposal to Take Canfor Private
Canfor Corporation (“Canfor”) confirms that, on August 10, 2019, it received an unsolicited and non-binding proposal from Great Pacific Capital Corp. (“Great Pacific”) pursuant to which Great Pacific has suggested that it would be willing to acquire all outstanding common shares of Canfor (excluding those already directly or indirectly owned by Great Pacific) at a price of $16.00 per common share (the “Indicative Offer”).
Canfor cautions its shareholders and potential investors that the Indicative Offer is non-binding on Great Pacific and there can be no certainty that the Indicative Offer or any other strategic transaction with Great Pacific or any other person will be pursued by Canfor, supported by Canfor’s board of directors (the “Board”) or ultimately completed.
The Board has constituted a special committee of independent directors (the “Special Committee”) to review the Indicative Offer and, in consultation with its legal and financial advisors, consider Canfor’s strategic alternatives, including Canfor’s response, if any, to the Indicative Offer.
Following the Special Committee’s review of the Indicative Offer and the receipt of financial and legal advice, Canfor will be in position to respond to the statements made by Great Pacific in its August 11, 2019 press release, should Canfor determine it is appropriate to do so.
Canfor is a leading integrated forest products company based in Vancouver, British Columbia (“BC”) with interests in BC, Alberta, North and South Carolina, Alabama, Georgia, Mississippi and Arkansas, as well as in Sweden with its recent majority acquisition of Vida Group. Canfor produces primarily softwood lumber and also owns a 54.8% interest in Canfor Pulp Products Inc., which is one of the largest global producers of market northern bleached softwood kraft pulp and a leading producer of high performance kraft paper. Canfor shares are traded on The Toronto Stock Exchange under the symbol CFP.
Pat Elliott – Vice President Corporate Finance & Strategy – Patrick.Elliott@canfor.com – (604) 661-5441
Source: Canfor Corporation