Two Canadian pension funds reached an agreement on Monday to buy Pacific Coast timberland owner TimberWest Forest Corp (TWF_u.TO) in a deal valued at C$1.03 billion ($1.07 billion), including debt. The British Columbia Investment Management Corp and the Public Sector Pension Investment Board have offered TimberWest unitholders C$6.48 per unit in cash, a 19.6 percent premium to Friday's close of C$5.42 on the Toronto Stock Exchange. TimberWest sells timber from the nearly 328,000 hectares (810,000 acres) of forest land it owns on Vancouver Island on Canada's Pacific coast, and has logging rights on provincially owned forests in the region. The offer comes at a time of renewed interest in Canada's forestry sector, which has enjoyed increased sales to Asia after struggling through the downturn in lumber demand because of the U.S. housing market collapse.
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