Fifteen First Nations groups on Vancouver Island have taken a stand against TimberWest Forest Corp.’s (TSX:TWF.UN) $1 billion takeover deal, less than a week after the company said the deal is its best option.
Speaking to Business in Vancouver Monday evening, Hul’qumi’num Treaty Group chief negotiator Robert Morales said the forestry company has not sat down with First Nations regarding the proposed sale of its assets.
The deal, which was announced in April, would see British Columbia Investment Management Corp. and the Public Sector Investment Board, two of Canada’s largest pension funds, buy TimberWest for $1.03 billion.
The agreement would hand Canada’s soldiers, sailors, police officers and some 440,000 residents of B.C. the largest chunk of private forestlands in Western Canada.
Morales said, if nothing else, the First Nations just want a chance to sit down with TimberWest to talk about how the company’s private forestlands will be managed after the deal is done.
“I guess the first thing [we want] is willingness to sit down and meet and discuss how business will be done going forward,” said Morales. “Clearly, we’re not happy with the way clear-cutting and so forth has been happening in our territory.”
Last week, TimberWest closed a “go shop” period that allowed it to consider superior takeover offers from other groups.
The period ended without a superior proposal, prompting independent advisory firms ISS Governance Services and Glass Lewis & Co. LLC to recommend that TimberWest shareholders vote in favour of the original offer.
Because the company’s forestlands are privately owned, which is an oddity among most timber holdings in Canada, TimberWest is not required to consult with First Nations in the area.
Morales said the HTG only learned of the deal after reading about it in the newspaper.
The long-term issue at hand is that First Nations in the area consider that land “stolen,” Morales said, and that debate needs a resolution.
TimberWest shareholders are expected to vote on the deal on Tuesday.
At press time, TimberWest’s shares were valued at $6.07.
Joel McJay