Canfor Corporation and Canfor Pulp Products Inc. have entered into an arrangement agreement pursuant to which Canfor Corp will acquire all of Canfor Pulp’s issued and outstanding common shares not already owned by Canfor Corp and its affiliates.
The transaction will proceed through a court-approved plan of arrangement under the Business Corporations Act (British Columbia).
Under the terms of the Arrangement Agreement, the shareholders of Canfor Pulp, other than Canfor Corp and its affiliates, will have the option to receive, for each Canfor Pulp Share held: 0.0425 of a common share of Canfor Corp, or $0.50 in cash.
Canfor Corp currently owns approximately 54.8% of the issued and outstanding Canfor Pulp Shares. The $0.50 per Canfor Pulp Share represents a premium of 25% to Canfor Pulp’s closing share price on December 2, 2025, on the Toronto Stock Exchange and a premium of 38% based on the 10-day volume-weighted average share price of Canfor Pulp as of December 2, 2025, on the TSX.
The Transaction provides an opportunity for the creation of a stronger combined business for the benefit of Canfor Corp and its shareholders, and is expected to provide certain cost synergies.
Once combined with Canfor Corp, Canfor Pulp is expected to have access to improved liquidity opportunities to help preserve the long-term value of Canfor Pulp’s operations in view of the risks and uncertainties related to its business, financial condition and prospects.
Canfor Corp is a global leader in the manufacturing of high-value low-carbon forest products including dimension and
specialty lumber, engineered wood products, pulp and paper, wood pellets and green energy. Proudly headquartered in
Vancouver, British Columbia, Canfor Corp produces renewable products from sustainably managed forests, at more than
50 facilities across its diversified operating platform in Canada, the United States and Europe. Canfor Corp has a 77% stake
in Vida AB, Sweden’s largest privately owned sawmill company and also owns, approximately, a 54.8% interest in Canfor
Pulp. Canfor Corp Shares are traded on the TSX under the symbol CFP. For more information visit canfor.com.
Canfor Pulp is a leading global supplier of pulp and paper products with operations in the northern interior of British
Columbia. Canfor Pulp operates two mills in Prince George, British Columbia with a total capacity of 780,000 tonnes of
Premium Reinforcing Northern Bleached Softwood Kraft pulp (including 300,000 tonnes of annual production capacity
that, effective August 2024, has been indefinitely curtailed) and 140,000 tonnes of kraft paper.
