Business

Acadian Timber shares fall after Brookfield sells its 45% stake to Macer

Acadian Timber shares fall after Brookfield sells its 45% stake to Macer

Shares in Vancouver-based Acadian Timber Corp. continue to drop after Brookfield Asset Management Inc. sold its 45 per cent stake in the timberland operator to held Macer Forest Holdings Inc.

Brookfield announced after markets closed Tuesday it had sold the stake for $128 million or $17 per share.

Since then, the shares have dropped by about three per cent, from $17.00 on Tuesday to as low as $16.49 at noon on Thursday.

Acadian announced that because of the sale, Benjamin Vaughan of Brookfield would step down as chairman and be replaced by Malcolm Cockwell, a Macer principal and managing director at Haliburton Forest who has been on the board since May 2018.

RBC Capital Markets analyst Paul Quinn says in a report that the shakeup removes a known entity in Brookfield, but might be welcomed by investors hoping for "sleepy" Acadian to more actively expand beyond its core operations in New Brunswick and Maine.

In a statement, Cockwell says Macer was attracted to Acadian by its proven success and will support its current strategy and operations plan.