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Canfor Expands Stake in VIDA AB to 77% Following Minority Shareholder Agreement

Posted on December 13, 2024 |

Canfor Corporation has taken a significant step to strengthen its footprint in the global lumber market by increasing its ownership in VIDA AB, Sweden’s largest privately-owned sawmill company. This strategic move aligns with Canfor’s vision of expanding its global operations and capitalising on the strong European lumber market.

The corporation has acquired an additional 7% of VIDA AB’s outstanding shares. This acquisition raises Canfor’s total ownership of VIDA AB to 77%.

Key Highlights:

Ownership Expansion: Canfor now holds 77% of VIDA AB, following its purchase of an additional 7% stake from minority shareholders.
Background of the Agreement: The transaction was executed under the option privileges outlined in the February 2019 agreement when Canfor acquired its initial 70% stake for SEK 3,990 million (approximately C$580 million).
VIDA AB’s Performance: VIDA AB, Canfor’s European subsidiary, reported a strong profit of nearly SEK 300 million in Q2 2024, contrasting sharply with Canfor’s $251 million operating loss in the same period.

Strengthening Presence in the Global Lumber Market

Despite pricing pressures in North America, Canfor continues to see significant growth opportunities in Europe. VIDA AB’s solid financial performance highlights the importance of Sweden’s lumber industry in Canfor’s strategy. The Q3 2024 results reflect improved performance in the European market, reinforcing Canfor’s commitment to diversifying its global operations.

Forward-Looking Insights

Canfor remains optimistic about future growth but acknowledges the uncertainties inherent in the global lumber market. Forward-looking statements in this announcement outline potential opportunities and risks, underscoring the importance of dynamic market adaptation.

Conclusion

By increasing its stake in VIDA AB, Canfor solidifies its leadership in the global lumber market and reinforces its investment in Sweden’s sawmill sector. This move positions the company to drive growth, enhance profitability, and seize new opportunities in the European lumber industry.

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