Tenon says cash available to shareholders after liquidation likely to be US$4.7M
By Jonathan Underhill
July 5 (BusinessDesk) - Tenon, which is preparing to wind up as a company after agreeing to sell its remaining North American and New Zealand businesses, says it expects to have a cash surplus of about US$4.7 million to return to shareholders after liquidation.
The company said today it has finalised the net working capital adjustments required under the agreements relating to the US$100 million sale of its US operations to New York-based buyout firm Blue Wolf Capital and the US$55 million sale of its Clearwood mill in Taupo to a group of US and New Zealand investors led by Tenon's controlling shareholder Rubicon.
Tenon returned US$71 million, or $100 million, from the US sale via a share cancellation in December, and a second capital return of about US$43 million, also by cancelling shares, in April from the Clearwood proceeds. Shareholders could elect to be paid in US or New Zealand dollars.
Tenon shareholders approved the Clearwood sale at a meeting in March. Its shares will cease trading on the NZX at the close of trade on July 27 and will be delisted on July 31, the company said in a statement.
"Although subject to uncertainty, based on information available today, Tenon believes that the cash surplus upon completion of the liquidation will be around US$4.7 million," it said.
The shares last traded at 39 cents.