Primex Forest Products Ltd. and International Forest Products Ltd., both of which operate in the BC coastal forest products industry, entered into an agreement on March 28, 2001 under which Interfor agreed to make a takeover bid for all of Primex’s shares, and Primex agreed to support the bid. Three members of Primex’s senior management team agreed to tender their shares to the bid and two of them agreed to join Interfor’s board and senior management team. The consideration offered under the bid included cash and share alternatives. The total transaction value was approximately $110 million. The bid expired on May 1, 2001, at which time Interfor took up approximately 96 per cent of the shares that were subject to the bid.
Ian Webb, Nigel Cave, Barbara Smith and Colin MacDonald (competition) of Borden Ladner Gervais LLP as well as RBC Dominion Securities Inc. acted for Interfor. Primex and the Primex special committee of the board were represented by a McCarthy Tétrault team of Richard Balfour, Brian Vick, Joyce Lee, Mike Urbani (corporate), Nancy Trott (employment), Rosemarie Wertschek, Q.C., (tax) and Oliver Borgers (competition). Investment bank Raymond James Ltd. also acted for Primex.