Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


CITIC’S $218 Million Offer Rejected

Statement made by Cui Peisheng, Managing Director, CITIC New Zealand Limited


CITIC New Zealand is disappointed that Fletcher Challenge Forests has rejected its last offer to buy them out of the Central North Island Forestry Partnership for $218 million.

We saw the buyout as the commercially sensible way of resolving the legal disputes that exist between the partners.

It would also have given Fletcher Challenge Forests greater options in relation to a sale of the remainder of its operations or reducing its recapitalisation requirements as a stand alone company.

However, Fletcher Challenge Forests have an unrealistic view of the value of the forests, and discussions between us, which had been in progress for the past two weeks, have now broken down.

Our assessment is that a value of $218 million is somewhat greater than what Fletcher Challenge Forests’ share is worth today as there is new evidence that over-cutting has occurred. Our offer of $218 million was net of all claims, and inclusive of long-term supply contracts and retention of operating synergies.

CITIC remains committed to remaining in the Partnership, as does our determination to resolve our legal disputes through litigation if necessary.

Recapitalisation of the Partnership is now a priority, and the level required could be in excess of US$200 million.

CITIC is in a position to meet its contribution to recapitalisation.


For further information please contact
Mr Greg Molloy, CITIC New Zealand, Tel 0-9-309 1528. Cell phone 025 449 110

Issued on behalf of CITIC New Zealand by Dennis Lynch, Network Communications
Tel 0-9-379 3154
BUDMR007

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news