Canfor's sites are primarily located in British Columbia and the Southeast of the United States
With this purchase, he would virtually take over the second-biggest timber group in the world. Pattison's focus is on 49% of shares that are currently free float.
His subsidiary Great Pacific Capital is offering 16 US dollars per Canfor share that they do not own already. This is 82% more than the closing rate of last week. A share price of US-$16 leads to a total market capitalization of US-$2 billion for 125.22 million Canfor common shares.
The possible takeover would also entail removing Canfor shares from the stock market. Pattison announced that "Canfor is facing strategic and capital decisions that are best suited to a private company with a long-term focus.” The 90-year-old is known for this long-term investment strategies. The Globe and Mail, for instance, reports that he is known for buying companies in difficult economic situations. The difficulties that Canfor is facing are: low (sawn) timber prices, “particularly in British Columbia, where the industry environment remains particularly uncertain and challenging.”
Pattison also owns 10% of the world's largest lumber producer, West Fracer. Two years ago, his shares fueled speculations concerning a possible merger between Canfor and West Fraser.
Great Pacific Capital stated that its “ability to complete the proposed transaction is not subject to financing or due diligence and provides immediate liquidity for minority shareholders.”
Canfor is producing around 13.9 million m3/yr of softwood lumber (nominal value; 5.9 bn. bft). Converted to European output (2-by-4 equivalent), the total of 2018 was 9.5 million m3/yr with an additional production of 1.1 million t/yr of kraft pulp, 220,000 t/yr of BCTMP, and 140,000 t/yr of kraft paper.
In last year's November, Canfor bought of 70% of shares of Swedish timber group Vida.
