Canfor Shareholders Vote on Pulp Mill Trust

Friday, June 09, 2006 03:54 AM

Today is the day Canfor's shareholders will hold a special meeting to approve the "spinout" of Northwood, P.G. Pulp and Paper and Intercon.

When the dust settles, Canfor and the "Canfor Pulp Income Fund" will own the Pulp Business with Canfor holding 80% interest and Canfor shareholders having 20%.

There are 1250 enployees at the three sites, which produce about 135 thousand tonnes of bleached and unbleached kraft paper every year.

There are still some regulatory approvals that will need to be in place.

There are some who are concerned this step is just the first on the road to Canfor selling off the entire pulp operations as pulp operations throughout North America have come across difficult times lately.

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Posted on Friday, June 09, 2006 03:54 AM in News by 250 News

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Comments

Posted by: Dearth on June 9 2006 7:45 AM

Being as I am employeed within the industry alot of us are afraid of this deal as all past Income Trusts set up within the industry have failed with the closure of all involved mills. If I were you I'd be scared of this deal.

Posted by: Chadermando on June 9 2006 8:49 AM

If you just bought a house with minimal downpayment at these inflated prices be very scared....

Posted by: trusted on June 9 2006 11:43 AM

I trust Canfor will not be inclined to donate any of that 700 million due them re overpayment on the Softwood Lumber tariff to offset any loss experienced through the pulp operation.
Where there is smoke-I trust a bit of fire is present.
The bottom line in any business is profit!!
If the amount of profit does not warrant remaining in that business-and the major money has been reaped from the operation-then of course it is time to bid farewell.
So-be prepared!!!
Skip the good bye party.