David Carrigg, Vancouver Sun
Lumber giant Canfor has terminated an arrangement agreement between the company and Jim Pattison’s Great Pacific Capital Corporation.
The decision came despite a special committee of Canfor’s board previously supporting the almost $1-billion offer from Great Pacific Capital Corp to take full control of the publicly listed company and take it private.
Great Pacific Capital Corp already owns 51 per cent of Canfor, but to get the go-ahead for the $16-a-share cash offer, more than 50 per cent of the remaining shareholders had to back the offer. The deal would have cost $982 million.
In a statement released on Monday night, Canfor said that the “majority of the minority” of shareholders would not back the transaction by the Dec. 16 deadline.
About 45 per cent of the minority voters were in favour, but that fell five per cent short.
A special meeting of Canfor shareholders set for Dec. 18 has been cancelled.
In October, the special committee gave shareholders five reasons why the offer should be accepted.