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Canfor forms special committee to review Great Pacific buyout offer

Canfor Corporation has formed the special committee that will review the $981.7-million buyout offer from Jim Pattison’s Great Pacific Capital Corporation.

The special committee will evaluate Great Pacific Capital’s August 10 offer to acquire all outstanding common shares of Canfor (excluding those already directly or indirectly owned by Great Pacific) at a price of $16 per common share. Great Pacific Capital already owns 51 per cent of Canfor’s shares.

The committee of independent directors is comprised of Conrad Pinette (chair), John Baird, Barbara Hislop and J. McNeill (Mack) Singleton.

The committee has retained Greenhill & Co., Canada as its financial advisor to conduct a formal independent valuation of the common shares of Canfor. The special committee has retained Osler, Hoskin & Harcourt LLP as its legal counsel.

Great Pacific says the deal, which would turn Canfor private, would cut down on costs associated with a public company listing. The offer, which is non-binding, translates to a Canfor valuation of $2 billion.