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


Greenheart NZ to buy Northland Forest Managers for $1.5M

Greenheart NZ to buy Northland Forest Managers for $1.5 million

By Paul McBeth

Jan. 8 (BusinessDesk) - Greenheart Group has signed a conditional deal to buy Northland Forest Managers (1995) for $1.5 million as the Hong Kong-listed owner of Northland's Mangakahia forestry estate looks to expand its New Zealand interests.

Greenheart yesterday said it entered into a conditional agreement to buy all of the shares in Kerikeri-based Northland Forest Managers, which oversees 19,000 hectares of plantation forest throughout Northland. The forest manager counts Greenheart as its biggest client.

"The forest management service company is a well-established business with the prerequisite knowhow, experience and professionalism in plantation operation," Greenheart said in a statement. "The company believes the acquisition will increase the group's presence in New Zealand and expects that the experienced forest management team will assist greatly with the possible expansion of the group's plantation business in New Zealand and to other regions in the future."

Earlier this week Greenheart told the Hong Kong exchange it was in talks about a potential acquisition, to explain a 24 percent spike in its share price. The shares last traded at 64 Hong Kong cents.

The deal is expected to be completed five days after the conditions are met or Feb. 1, whichever is later.

Northland Forest Managers is co-owned by managing director Nick Kingsford and business manager Liz Kingsford.

In September, Greenheart said its New Zealand business experienced a sharp decline when prices for radiata pine fell to US$23.30 per cubic metre from US$33.70/m3 in the six months ended June 30, 2015.

Greenheart's New Zealand business accounted for about 89 percent of Greenheart's HK$297 million of first-half revenue.

The company said it would reduce its local harvest based on market conditions through the second half of the year.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Ground Rules: Government Moves To Protect Best Growing Land

“Continuing to grow food in the volumes and quality we have come to expect depends on the availability of land and the quality of the soil. Once productive land is built on, we can’t use it for food production, which is why we need to act now.” More>>


Royal Society: Calls For Overhaul Of Gene-Technology Regulations

An expert panel considering the implications of new technologies that allow much more controlled and precise ‘editing’ of genes, has concluded it’s time for an overhaul of the regulations and that there’s an urgent need for wide discussion and debate about gene editing... More>>


Retail: Card Spending Dips In July

Seasonally-adjusted electronic card spending dipped in July by 0.1 percent after being flat in June, according to Stats NZ. Economists had expected a 0.5 percent lift, according to the median in a Bloomberg poll. More>>


Product Stewardship: Govt Takes More Action To Reduce Waste

The Government is proposing a new way to deal with environmentally harmful products before they become waste, including plastic packing and bottles, as part of a wider plan to reduce the amount of rubbish ending up in landfills. More>>


Earnings Update: Fonterra Sees Up To $675m Loss On Writedowns

“While the Co-op’s FY19 underlying earnings range is within the current guidance of 10-15 cents per share, when you take into consideration these likely write-downs, we expect to make a reported loss of $590-675 million this year, which is a 37 to 42 cent loss per share." More>>