CITIC disappointed that shareholders decline CNIFP

Media Release

For immediate release

13 August 2002

CITIC disappointed that Fletcher Challenge Forests shareholders decline CNIFP deal

CITIC has expressed disappointment at the outcome of today’s special meeting of Fletcher Challenge Forests’ shareholders at which the acquisition of the Central North Island Forestry Partnership (CNIFP) assets was not approved.

The transaction would have seen CITIC, the Chinese Government’s international investment arm, take a 35% shareholding in Fletcher Challenge Forests, through its Hong Kong associate SEAWI.

“CITIC is obviously disappointed that the acquisition has not been approved and that the uncertainty surrounding the future of this key strategic asset remains,” said Dr Peter Kwok, Chairman of SEAWI.

“We have been very impressed with the Chairman, Board and management of Fletcher Challenge Forests in leading the process. We want to express our thanks for their commitment to the transaction and the considerable effort they have made,” said Dr Kwok.

“CITIC will now review the available options in New Zealand and globally for quality investment in world-class forestry.

“CITIC will continue to be a significant forestry investor, having been engaged in the ownership, processing and trading of forest products since 1984. The company currently has forestry operations in six countries around the globe, including the United States, Canada, Chile, Russia and South Korea,” said Dr Kwok.

ENDS

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