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

 

Offer For Opio Forestry Fund By City Forests Ltd

Takeover Offer For Opio Forestry Fund By City Forests Limited

City Forests Limited (“City Forests”) today announced its intention to make a full takeover offer for the Opio Forestry Fund at 85c per unit.

The Offer is expected to be posted to unitholders later this week and is conditional on obtaining acceptances of no less than 75% of the units.

City Forests, a wholly owned trading company of the Dunedin City Council, has been harvesting forests in the Otago region for more than 60 years. It currently owns and manages approximately 15,300 hectares of forests in the region.

The chief executive of City Forests, Phil Taylor, said that it had full council approval for the offer.

“Opio’s estate is well known to us, with much of its forests sitting adjacent to ours,” he said. “It therefore makes perfect sense for us to be interested in acquiring an interest in the estates.

“We have a track record of managing our forests in an environmentally sustainable manner. In doing this we ensure the long-term productivity of the forest lands and their ongoing contribution to the social and economic wellbeing of the Otago region.

“At 85c per unit, our offer provides holders with a very attractive premium over recent market prices.”

The Offer price represents:

a 52.9% premium to 55.6 cents, the average closing price for units in the 90 days prior to announcement of the Offer; a 46.6% premium to 58 cents, the closing price for units on the day before the Offer was announced; and, a 41.7% premium to 60 cents, the highest price that the units in the Fund have traded over the past four years.

Mr Taylor noted that the Fund had not paid a dividend and was unlikely to declare a distribution to unitholders until harvesting of its forest crop commences. The Offer, therefore, provides unitholders with an opportunity to realise their investment for cash now, removing the uncertainty of future returns, he said.

“Certainly, the forestry sector is currently facing a number of significant challenges that may have negative implications on the future value realised from Opio’s forest crop.”

Opio comprises three main forest areas – the original Opio forest in Southland and two forests in South Otago. It presently has 14,964,000 fully paid units on issue. The Offer relates to 100% of the units on issue.

The timing in respect of the Offer is as follows:

notice of the Offer is given to the Fund on 3 August 2004; offers will be sent to all unit holders of the Fund on or about 4 August 2004;

and, the Offer will be open for acceptance for four weeks and will close on 3 September 2004 subject to the right of City Forests to extend the date for acceptances.

Forsyth Barr is advising City Forests on the takeover.

Details on City Forests are available on its website: http://www.cityforests.co.nz

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Media Mega Merger: StuffMe Hearing Argues Over Moveable Feast

New Zealand's two largest news publishers are appealing against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Elsewhere:


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>

ALSO:


Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>

ALSO:

Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>