Canfor is remaining public after terminating its previous arrangement agreement with Great Pacific in an attempt to take the company private.
Previously announcing an arrangement agreement with Great Pacific Capital Corp. on October 28, 2019, the proposed plan to take Canfor private has since been eliminated due to shareholder votes.
On Tuesday, Canfor said they had agreed with Great Pacific to terminate the previous agreement. Canfor said that based on the shareholder votes, the “majority of the minority” vote required to approve the arrangement would not be achieved, which was fully pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions.
“Approximately 45% of the votes cast by proxy by minority shareholders as at the proxy cutoff were in favour of the Arrangement,” said Canfor.
“Canfor plans to continue to diversify its business and pursue growth strategies in positioning itself for long-term success and sustainability.”