Canfor Corporation (CFP.TO) and Canfor Pulp Products Inc. (CFX.TO) announced that they have entered into an arrangement agreement. Through this court-approved plan of arrangement, Canfor Corp will acquire all of the issued and outstanding common shares of Canfor Pulp not already owned by Canfor Corp and its affiliates.
Under the terms of the agreement, Canfor Pulp shareholders, excluding Canfor Corp and its affiliates, will have the option to receive either 0.0425 of a Canfor Corp common share or C$0.50 in cash for each Canfor Pulp share held. This consideration provides flexibility for shareholders to choose between equity participation in Canfor Corp or immediate cash value.
Canfor Corp currently owns approximately 54.8% of Canfor Pulp's outstanding shares. The cash offer of C$0.50 per share represents a 25% premium to Canfor Pulp's closing share price on December 2, 2025, and a 38% premium based on the 10-day volume-weighted average share price as of the same date on the Toronto Stock Exchange (TSX).
The Agreement includes a go-shop period extending until January 19, 2026, during which Canfor Pulp will be permitted to actively solicit, evaluate and enter into negotiations with third parties that express an interest in acquiring Canfor Pulp.
If Canfor Pulp terminates the Arrangement Agreement to accept a Superior Proposal, a C$500,000 termination fee is payable by Canfor Pulp to Canfor Corp.
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