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

 

Discussion Paper: Govt To Act On Unfair Commercial Practices

“I’ve heard about traders who have used aggressive tactics to sell products to vulnerable consumers, and businesses that were powerless to stop suppliers varying the terms of their contract, including price.” More>>

ALSO:

'Considering Options' On Tip Top Ownership: Fonterra Drops Forecast Milk Price

Fonterra Co-operative Group Limited today revised its 2018/19 forecast Farmgate Milk Price range from $6.25-$6.50 per kgMS to $6.00-$6.30 per kgMS and shared an update on its first quarter business performance. More>>

ALSO:

Science: Legendary Telescope Being Brought Back To Life

One of the world’s most famous Victorian telescopes will be restored and available for public viewing in Takapō after spending five decades in storage... The Brashear Telescope was used in the late 1800s by Percival Lowell for his studies of Mars. More>>

Employment Amendment Bill Passes: CTU Hails Victory For Working People

"This law allows Kiwis to access their basic rights at work, to make more informed choices about their employment, and help each other get a fairer deal." More>>

ALSO: