British Columbia Investment Management Corp., which manages C$86 billion (US$89.9 billion) in assets for public pension plans and government trusts, and the C$50.8 billion Public Sector Pension Investment Board, Montreal, agreed to acquire TimberWest Forest Corp., a timber and land management company, for C$1.03 billion in cash, confirmed Mark Boutet, vice president at the PSPIB, in an e-mail.
The agreement includes a 60-day “go-shop” period during which TimberWest can solicit other offers and would pay a $18 million “break fee” if it chooses to take a rival offer.
Under the agreement, British Columbia IM and the PSPIB will each hold 50% of TimberWest. British Columbia IM already owns a 22.5% interest in TimberWest through its ownership of convertibles.
The acquisition is being made by both the money manager and pension plan board as part of their private equity investment strategy. No fundamental changes in the operations of the business are anticipated, the money manager and pension plan board stated in a joint news release.
TimberWest's independent directors unanimously approved the agreement and are recommending that unit holders approve the agreement at its meeting, which is expected to be held on or about June 14. Pending any rival offers, the deal is expected to close in late June.
