B.C. billionaire Jim PattisonB次元官网网址檚 offer of $16 a share may be about twice the current market value of forest company Canfor Corp., but itB次元官网网址檚 not a done deal, the companyB次元官网网址檚 board says.

Canfor issued a statement Sunday night after PattisonB次元官网网址檚 holding company Great Pacific Capital Corp. announced its bid to buy the remaining shares of Canfor and take it private. Pattison is already a major shareholder of Canfor and West Fraser Timber, two of the companies that are struggling through a downturn in their B.C. forest products operations.

B次元官网网址淐anfor 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 other strategic transaction with Great Pacific or any other person will be pursued by Canfor, supported by CanforB次元官网网址檚 board of directors or ultimately completed.B次元官网网址�

Pattison, the 90-year-old investor whose holdings include grocery chain Save-on-Foods, real estate, insurance, broadcasting and other assets, has a history of long-term investing. In a statement, Great Pacific says it already owns 51 per cent of Canfor shares.

B次元官网网址淕reat PacificB次元官网网址檚 ability to complete the proposed transaction is not subject to financing or due diligence and provides immediate liquidity for minority shareholders,B次元官网网址� the statement says.

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The offer comes at a difficult time for the B.C. forest industry, with temporary or permanent mill closures across the Interior. Operators point to shortages of logs in the wake of B.C. beetle infestations, a slump in North American lumber prices, pressure from the latest round of import penalties imposed by the U.S. government, and high costs and stumpage fees imposed on Crown land timber.

tfletcher@blackpress.ca
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