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Tuesday, August 13, 2019 | Your community newspaper since 1916

CITIZEN PHOTO BY BRENT BRAATEN

Eye on art Murphy Crampton, 11, looks of his clay sculpture he was making during Creativity Camp at Two Rivers Gallery on Monday. Local potter Ayla Davidson was teaching the students how to work with clay. Children in the one-week class will be learning different ways to make abstract art.

Pattison makes bid to take Canfor private Man jailed for trying to procure sex Ian BICKIS The Canadian Press

VANCOUVER — Shares of Canfor Corp. closed up more than 70 per cent Monday after a Jim Pattison Group company made a $16 a share bid to take the company private. Pattison’s Great Pacific Capital Corp., which already owns about 51 per cent of the lumber producer, made the all-cash offer over the weekend that was a 60-per-cent premium to the company’s 60 day average price and an 81.8-per-cent premium to Friday’s close. Canfor shares closed up $6.46, or 73.4 per cent, at $15.26 on the Toronto Stock Exchange after closing at $8.80 Friday. Great Pacific says the proposed transaction, which values Canfor at about $2 billion, will allow for the elimination of the significant costs related to maintaining a public company listing and allow for reinvestment of that money in the company’s operations. It says the company is facing important strategic and capital decisions that it believes are best suited to a private company with a long-term focus. Canfor says it has formed a special committee of independent directors to review the offer and consider its strategic alternatives. CIBC Capital Markets analyst Hamir Patel said in an analyst note that he estimates the share offer represents a much lower valuation on capacity than other forestry deals in recent years. He figures the $16 a share offer values Canfor’s capacity of 6.55 billion board feet a year at US$298 per thousand board feet, well below the US$615 per thousand

Today’s Weather Hi +17° Low +9°

Mark NIELSEN Citizen staff mnielsen@pgcitizen.ca

CITIZEN PHOTO BY BRENT BRAATEN

Canfor Corp.’s pulpmill in Prince George is seen on Monday. board feet West Fraser Timber Co. Ltd. paid for Gilman Co. in 2017 and the US$525 per thousand board feet Canfor paid for Elliott Sawmilling last year. The lower valuation reflects Canfor’s high exposure to B.C., where log costs have spiked from a supply crunch, as well as significant deterioration in market conditions over the last year, said Patel. RBC Dominion Securities Inc. analyst Paul Quinn said in a note that he believes the deal has a high probability of closing as proposed, given how much of the company’s shares The Jim Pattison Group already owns. Quinn said the “vote of confi-

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dence” could spark more interest the forestry sector, which especially in B.C. has seen significant challenges in recent months. The sector has struggled after lumber prices dropped by more than half from record highs last summer as the U.S. housing market slowed. At the same time, B.C.’s sector has been struggling after the fallout of the mountain pine beetle and wildfires have led to a shortage of available timber, raising the costs of fibre for lumber producers. Companies have responded by significantly cutting back capacity in the province, including numerous curtailments and several permanent mill closures.

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A Prince George man was sentenced Monday to one year in jail for attempting to procure sex from an employee at Treasure Cove Casino. Less credit for time served, Joseph Neil Johnny, 46, will serve a further 56 days in jail. He was also sentenced to three years probation following completion of the time in jail. On the evening of Sept. 26, 2018, Johnny had been drinking and began chatting up a woman working at Treasure Cove while she was on break in the smoking area outside the bingo hall. As she politely answered his questions, Johnny began to move closer to her, making her feel uncomfortable. Johnny then asked her “how much an hour?” When she replied “excuse me?” he repeated the question. “I’m not a prostitute, I’m at work right now,” she then told Johnny. She finished her cigarette, went inside and told security, who escorted him out of the building. RCMP were subsequently contacted, and Johnny was taken into custody where he has remained ever since. Crown counsel had argued for 18 months in jail while defence counsel asked for time served. Crown’s suggestion of three years probation was uncontested. Johnny has had an long history

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Johnny has been diagnosed with mental health issues that require medication, as well as developmental challenges. of sexual offending and at one point he was on a 10-year longterm supervision order which he had breached it 15 times for inappropriate behaviour. He had also failed to complete treatment programs on four occasions and at the time of his arrest, he was serving two years probation for bombarding a woman with sexually-suggestive phone calls and voice messages. Johnny has been diagnosed with mental health issues that require medication, as well as developmental challenges. He also tends to commit his offences when he stops taking his medication and is consuming alcohol. Malfair found further time in jail was appropriate in the name of public protection. And his terms of probation include a curfew, remaining at an approved residence and participating in a treatment program as directed. Johnny’s lawyer, Keith Jones, had suggested his client is in need of one-on-one counseling rather than group therapy. Johnny has also been ordered to stay away from the casino.

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