Canfor Completes Transfer of Pulp Business to a New Limited Partnership

On July 1, 2006 Canfor completed the transfer of its northern bleached softwood kraft pulp business, primarily consisting of its Northwood Pulp Mill, Intercontinental Pulp Mill and Prince George Pulp and Paper Mill, to a new limited partnership. As a result of the transfer, valued at approximately $900 million, Canfor Pulp Limited Partnership became the fourth-largest producer in the world of northern bleached softwood kraft market pulp.
The plan of arrangement under which the transfer occurred also provided for the distribution to Canfor's shareholders of the units of a new income trust, listed on the Toronto Stock Exchange, which holds a 20 per cent interest in the Canfor Pulp Limited Partnership. Under the plan of arrangement, in exchange for each outstanding Canfor Share held by them, Canfor shareholders received one new Canfor Share and 1/10 of a fund unit.
Canfor was represented in-house by David Calabrigo, vice-president, corporate development, general counsel and corporate secretary. He was assisted by Stikeman Elliott LLP with a team that included Jonathan Drance, John Anderson, John Stark, Philip Griffin, Valerie Aberdeen, Kimberly Burns, David Brown (litigation) and David Weekes (tax). US advice was provided by Paul, Weiss, Rifkind, Wharton & Garrison LLP with a team that included Edwin Maynard and Aun Singapore.