Canfor to Acquire Remaining Stake in Canfor Pulp

Canfor Corporation and Canfor Pulp Products Inc. recently announced that they entered into an agreement under which Canfor will acquire all outstanding common shares of Canfor Pulp not already owned by Canfor and its affiliates. The transaction will proceed by way of a court-approved plan of arrangement under the Business Corporations Act of British Columbia.

Canfor currently owns about 54.8% of Canfor Pulp’s issued and outstanding shares.

Under the agreement, Canfor Pulp shareholders (other than Canfor and its affiliates) may elect to receive either 0.0425 of a Canfor common share or CA$0.50 in cash for each Canfor Pulp share held.

The CA$0.50 cash option represents a 25% premium to Canfor Pulp’s closing share price on December 2 on the Toronto Stock Exchange (TSX) and a 38% premium to its 10-day volume-weighted average price as of the same date.