Gunns Mergers, acquisitions, takeovers
2008-11-25 11:32:00+10:00
25 November 2008 Company Announcements Platform Australian Stock Exchange Limited PARTIAL DIVESTMENT OF SOFTWOOD PLANTATIONS FOR $175M Gunns Limited has announced today that it has entered into an agreement with GMO Renewable Resources, an international timber investment management organisation, for the divestment of approximately 33,000 hectares of softwood (Radiata Pine) plantation in the Green Triangle region of South Australia and Victoria. Gunns has issued similar announcements 15 times before, most recently about 0 minutes ago on Tuesday 30 September 2008. The announcement 'Partial Divestment of Softwood Plantations for $175M' was issued to the ASX on Tuesday 25 November 2008. The share price for Gunns was $0.695 trending down at the time of the announcement. [Notice Type: Mergers, acquisitions, takeovers]
2008-11-25 11:32:00+10:00
25 November 2008 Company Announcements Platform Australian Stock Exchange Limited PARTIAL DIVESTMENT OF SOFTWOOD PLANTATIONS FOR $175M Gunns Limited has announced today that it has entered into an agreement with GMO Renewable Resources, an international timber investment management organisation, for the divestment of approximately 33,000 hectares of softwood (Radiata Pine) plantation in the Green Triangle region of South Australia and Victoria. Gunns has issued similar announcements 15 times before, most recently about 0 minutes ago on Tuesday 30 September 2008. The announcement 'Partial Divestment of Softwood Plantations for $175M' was issued to the ASX on Tuesday 25 November 2008. The share price for Gunns was $0.695 trending down at the time of the announcement. [Notice Type: Mergers, acquisitions, takeovers]
Partial Divestment of Softwood Plantations for $175M
Tuesday 25 Nov 2008
25 November 2008
Company Announcements Platform Australian Stock Exchange Limited
PARTIAL DIVESTMENT OF SOFTWOOD PLANTATIONS FOR $175M
Gunns Limited has announced today that it has entered into an agreement with GMO Renewable Resources, an international timber investment management organisation, for the divestment of approximately 33,000 hectares of softwood (Radiata Pine) plantation in the Green Triangle region of South Australia and Victoria. This estate represents approximately 75% of the managed softwood plantations owned by Auspine. Auspine was acquired by Gunns Limited in February 2008. The transaction will be made from funds committed to an investment fund managed by GMO Renewable Resources, subject to final regulatory approval requirements. Gross proceeds from the transaction will amount to approximately $175.2M, which reflects full book value of the forest asset. The proceeds from the transaction will be applied primarily to reducing bank debt. Under the arrangement, Gunns will retain the freehold land associated with the standing timber. Timber supply to Gunns processing facilities will not be impacted as a result of the divestment, with Gunns continuing to manage the forest estate. Future harvested timber associated with this plantation area will be acquired at a market value from GMO Renewable Resources, with the harvest profile of the plantation reflecting a 28 year rotation. The transaction relates to a single rotation with Gunns retaining responsibility for estate replanting and ownership of future rotations. Gunns manages over 200,000 hectares of plantations, consisting of approximately 150,000 hectares of hardwood plantation estate in Tasmania and approximately 50,000 hectares of softwood plantation estate predominantly in South Australia and Victoria. This estate has expanded significantly over the past 5 years from around 90,000 hectares in 2003. The existing estate is now at a level which provides a sustainable base for planned Company operations, including the Bell Bay mill development, into the future. Following the recent $336M equity raising, this transaction will further reduce bank debt and strengthen Gunns’ balance sheet. Further information:Investors Wayne Chapman – 03 6335 5201 Media Matthew Horan – 0403 934 958
Registered Head Office: 78 Lindsay Street (PO Box 572) Launceston Tasmania Australia 7250 Telephone: 03 6335 5201 Int: +613 6335 5201 Fax: 03 6331 7587 Int: +613 6331 7587
Tuesday 25 Nov 2008
25 November 2008
Company Announcements Platform Australian Stock Exchange Limited
PARTIAL DIVESTMENT OF SOFTWOOD PLANTATIONS FOR $175M
Gunns Limited has announced today that it has entered into an agreement with GMO Renewable Resources, an international timber investment management organisation, for the divestment of approximately 33,000 hectares of softwood (Radiata Pine) plantation in the Green Triangle region of South Australia and Victoria. This estate represents approximately 75% of the managed softwood plantations owned by Auspine. Auspine was acquired by Gunns Limited in February 2008. The transaction will be made from funds committed to an investment fund managed by GMO Renewable Resources, subject to final regulatory approval requirements. Gross proceeds from the transaction will amount to approximately $175.2M, which reflects full book value of the forest asset. The proceeds from the transaction will be applied primarily to reducing bank debt. Under the arrangement, Gunns will retain the freehold land associated with the standing timber. Timber supply to Gunns processing facilities will not be impacted as a result of the divestment, with Gunns continuing to manage the forest estate. Future harvested timber associated with this plantation area will be acquired at a market value from GMO Renewable Resources, with the harvest profile of the plantation reflecting a 28 year rotation. The transaction relates to a single rotation with Gunns retaining responsibility for estate replanting and ownership of future rotations. Gunns manages over 200,000 hectares of plantations, consisting of approximately 150,000 hectares of hardwood plantation estate in Tasmania and approximately 50,000 hectares of softwood plantation estate predominantly in South Australia and Victoria. This estate has expanded significantly over the past 5 years from around 90,000 hectares in 2003. The existing estate is now at a level which provides a sustainable base for planned Company operations, including the Bell Bay mill development, into the future. Following the recent $336M equity raising, this transaction will further reduce bank debt and strengthen Gunns’ balance sheet. Further information:Investors Wayne Chapman – 03 6335 5201 Media Matthew Horan – 0403 934 958
Registered Head Office: 78 Lindsay Street (PO Box 572) Launceston Tasmania Australia 7250 Telephone: 03 6335 5201 Int: +613 6335 5201 Fax: 03 6331 7587 Int: +613 6331 7587
