A company controlled by billionaire Jim Pattison has tabled an offer to take Canfor Corp. (CFP.TO) private.

Great Pacific Capital Corp., which already owns 51 per cent of Canfor, is proposing to buy the remaining shares of the B.C. lumber producer for $16 per share in cash, an 82 per cent premium to the stock’s closing price of $8.80 on Friday.

Great Pacific said removing “significant administrative expenses” that comes with maintaining a public listing in Canada will help stabilize Canfor’s operations as the lumber industry faces ongoing challenges, particularly in British Columbia.  Its offer isn’t subject to financing or due diligence conditions.

Canfor said in a release its board has established a committee of independent directors to review the offer.



Raymond James analyst Daryl Swetlishoff says if the transaction goes through, shares of remaining public lumber companies including West Fraser Timber Co. Ltd., Interfor Corp., and Western Forest Products Inc. could be pushed higher as Canfor goes private.

“The proposed transaction provides evidence that value remains in the sector and that 'smart' long term money sees value,” Swetlishoff  wrote in a note to clients Monday.

The potential deal would be subject to shareholder and regulatory approvals.