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

 

Fletcher Challenge Rejects CITIC’s Offer


Fletcher Challenge Rejects CITIC’s Offer

AUCKLAND, 1 November 2000 – Fletcher Challenge Limited today confirmed that it had rejected an offer made by CITIC in September to buy Fletcher Challenge Forests out of the Central North Island Forestry Partnership.

Mr Terry McFadgen, the Chief Executive of Fletcher Challenge Forests said, “CITIC’s net offer of $218 million for Fletcher Forests’ entire equity and secured debt position is significantly below fair value for our interest. In addition, the offer included a deduction of over $100 million for alleged claims against Fletcher Challenge Forests, all of which we believe to be substantially baseless.”

“Fletcher Challenge Forests is not prepared to sell its assets at values based on current low log prices. Subject to shareholder approval at the Company’s Annual Shareholders meeting tomorrow, we will proceed as planned with the Forests Division’s recapitalisation by way of a rights issue. This will ensure that shareholders do not lose the potential upside in value that may emerge overtime, rather than see this value transferred to others,” he said.

Fletcher Challenge Forests also noted, and expressed disappointment that, offers to proceed to immediate arbitration of CITIC’s claims have to date been rejected.

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

"Broad-Based Growth": GDP Rises 1 Percent In June Quarter

Gross domestic product (GDP) rose 1.0 percent in the June 2018 quarter, up from 0.5 percent last quarter, Stats NZ said today. This is the largest quarterly rise in two years. More>>

ALSO:

Judicial Review: China Steel Tarrif Rethink Ordered

On 5 July 2017 the Minister determined not to impose duties on Chinese galvanised steel coil imports. NZ Steel applied for judicial review of the Minister’s decision. More>>

Debt: NZ Banks Accelerate Lending In June Quarter

New Zealand's nine major lenders boosted lending at the fastest quarterly pace in almost two years as fears over bad debts subsided. More>>

ALSO:

Balance Of Trade: Annual Current Account Deficit Widens To $9.5 Billion

New Zealand’s current account deficit for the year ended June 2018 widened to $9.5 billion, 3.3 percent of GDP, Stats NZ said today. More>>

ALSO: