Timberwest to Be Acquired by bcIMC, PSP Investments
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TimberWest Forest Corp., Vancouver, B.C., Canada, reported this week that it has agreed to be acquired by two Canadian pension funds—British Columbia Investment Management Corp. (bcIMC) and the Public Sector Pension Investment Board (PSP Investments), for $1.03 billion in cash, including assumed debt. The purchase price is equal to $6.48 per existing stapled unit, which represents a 25% premium over the 20-day volume-weighted average price of TimberWest stapled units on the Toronto Stock Exchange for the period ended April 8.
As part of the definitive agreement, TimberWest has a 60-day "go-shop" period during which it is permitted to solicit a superior proposal. bcIMC and PSP have no right to match a superior proposal made during this period. If the company is successful in soliciting a superior proposal during the go-shop period, there will be a break fee payable to bcIMC and PSP Investments of approximately $18 million.
V. Edward Daughney, chairman of TimberWest, said that "we believe this transaction provides significant value to TimberWest unitholders. bcIMC and PSP Investments are both leading Canadian pension plans well-positioned to support the long-term development of TimberWest."
TimberWest owns in fee simple approximately 327,000 hectares or 808,000 acres of private land and is in the business of selling timber products and real estate.
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