Billionaire businessman Jim Pattison wants to take over the 49 per cent of Canfor he does not already own and take the company private. (Darryl Dyck/Canadian Press)
Jim Pattison’s Great Pacific Capital Corp. has made an offer to buy the rest of Canfor Corp. it does not already own for $16 per share, an offer that values the lumber, plywood, pulp and paper company at about $2 billion.
Shares in Canfor closed at $8.80 on the Toronto Stock Exchange on Friday. Shares bounced 70 per cent to $15 a share at the opening of trading Monday.
Vancouver-based Great Pacific already owns about a 51 per cent stake in Canfor and plans to take the company private.
Pattison, 90, owns supermarkets, fisheries and billboards through his conglomerate holding company Great Pacific.
Great Pacific says the proposed transaction will allow for the elimination of the significant costs related to maintaining a public company listing and allow for reinvestment of that money in the company’s operations.
Canfor has been hit by a slowdown in the U.S. housing market and in demand from China.
Canfor says it has formed a special committee of independent directors to review the offer and consider its strategic alternatives.