Great Pacific Capital Corp. failed to acquire Canfor Corp. due to resistance from minority shareholders. In October, the Canfor management approved the takeover offer made in August and also recommended that the shareholders approve it. With the acquisition by the major shareholder Great Pacific, Canfor would have been taken off as a private company and off the stock exchange.
On December 16, however, according to Canfor, it became apparent that the absolute majority required under the regulation to protect minority shareholders will not be achieved. Only 45% of the shareholders had approved the takeover. This makes Canfor a listed company.
All shares already transferred to Great Pacific by the minority shareholders will now be transferred back. Despite the failed acquisition, which would have resulted in a significantly better capital base, Canfor said it would stick to the planned diversification strategy