VANCOUVER – Western Forest Products Inc. (TSX:WEF) said Wednesday that Brookfield Asset Management (TSX:BAM.A) is reducing its stake in the forestry company.

Under a secondary offering announced after the close of trading, Brookfield Special Situations Management has agreed to sell 40 million shares at a price of $2.50 per share.

The underwriters have also been granted an over-allotment option for an additional six million shares at the same price.

Brookfield holds 113,960,052 shares in Western Forest Products, representing a 29 per cent stake.

Following the offering, Brookfield’ stake will drop to about 19 per cent or about 17 per cent if the over-allotment option is fully exercised.

Western Forest Products has eight sawmills and three remanufacturing plants in B.C.

Shares in the company closed up two cents at $2.60 on the Toronto Stock Exchange on Wednesday.