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

 

ArborGen Transfer Issue Raised


ArborGen Transfer Issue Raised Under GPG Partial Takeover Offer for Rubicon

The Independent Directors of Rubicon Limited (Rubicon) today announced that they have notified GPG Forests Limited (GPG) that Rubicon has been advised by the ArborGen partners, that their legal advice is, that a change of control of Rubicon resulting from a successful GPG partial takeover Offer, would require the partners’ consent in relation to the ArborGen joint venture. The current partners in ArborGen are Rubicon Industries USA (31.67%), International Paper Company (31.67%), MeadWestvaco Corporation (31.67%), and Genesis Research and Development (5%). The partners have indicated that the giving of that consent would depend, amongst other things, upon the willingness of GPG to allow Rubicon to meet the remaining ArborGen 5-year funding requirements. If consent is not given by a majority of the non-Rubicon ArborGen partners, then those partners may take the view that a breach of the ArborGen agreement has occurred and seek to expel Rubicon from the partnership.

Mr Michael Andrews, the Chairman of Rubicon said “Rubicon has previously received legal advice on this issue. Rubicon’s view is that the partners’ consent to a transfer of the ArborGen interest is not required for a change of control in Rubicon, but it is clear that the ArborGen partners are taking a different view. Given that one of the conditions of the GPG partial Offer for Rubicon is, in effect, that there are no prejudicial change of control issues arising out of the Offer, we have alerted GPG to this new issue and will be discussing with them how they wish to proceed.

The relevance to Rubicon shareholders is, of course, that GPG’s Offer for Rubicon shares is only a partial one, to gain a 50% control position only. This means that if the GPG offer were successful, shareholders may be left holding 60% of their current shareholding in Rubicon, in a situation where the ArborGen partners may refuse to consent to the change of control of Rubicon Industries USA’s interest in ArborGen upon the change of control in Rubicon to GPG. As Grant Samuel & Associates valued ArborGen at between $49 million to $98 million, or 18 to 35 cents per Rubicon share, this is a highly material issue that needs to be addressed by GPG. We hope to work with them to resolve this issue for shareholders.” he said.


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Auckland Transport: Successful Bridge Repair Opens Two Additional Lanes To Traffic

The opening of two additional lanes on the Auckland Harbour Bridge this morning will help relieve some motorway congestion for motorists heading home to the North Shore tonight. More>>

ALSO:

Statistics New Zealand: COVID-19 Sees Record 12.2 Percent Fall In New Zealand’s Economy

Gross domestic product (GDP) fell by 12.2 percent in the June 2020 quarter, the largest quarterly fall recorded since the current series began in 1987, as the COVID-19 restrictions in place through the quarter impacted economic activity, Stats NZ said ... More>>

ALSO:

Climate: Scientists Release ‘Blueprint’ To Save Critical Ecosystems And Stabilize The Earth’s Climate

A group of scientists and experts produced the first comprehensive global-scale analysis of terrestrial areas essential for biodiversity and climate resilience, totaling 50.4% of the Earth's land. The report was published in Science Advances ... More>>

ALSO:

MPI: Independent Review Launched Into Assurances For Safe Transport Of Livestock By Sea

The Ministry for Primary Industries (MPI) has launched an independent review of the assurances it receives for the safe transport of livestock by sea. MPI Director-General Ray Smith says Mike Heron QC has been appointed to lead the review, which is expected ... More>>

ALSO:


Computers: New Zealand PC Market Grows Nearly 40% Due To Work From Home Demand

COVID-19 had large impacts on demand for PCs as businesses prepared for lockdowns by purchasing notebooks to mobilise their workforce. In the second quarter of 2020, New Zealand's Traditional PC market experienced a 39.7% year-on-year (YoY) growth ... More>>

ALSO:


University Of Auckland: Whale-Watching By Satellite – Follow Their Travels Online

Scientists have successfully attached satellite tracking tags to six New Zealand southern right whales, or tohorā, and are inviting the public to follow the whales’ travels online. Part of a major research project involving the University of Auckland ... More>>

Commerce Commission: Kiwibank Admits System Failures And Agrees To Pay Customers $5.2 Million

Kiwibank has entered into a settlement agreement with the Commerce Commission after reporting that it failed to have in place robust home loan variation disclosure policies, procedures and systems. In a settlement dated 27 August 2020, Kiwibank admitted that ... More>>

Ministry of Health: Public Transport Distancing Requirements Relaxed

Physical distancing requirements on public transport have been reviewed by the Ministry of Health to determine whether they are still required at Alert Level 2 (or below). The Ministry’s assessment is that mandatory face covering and individuals tracking ... More>>

ALSO:

NZHIA: New Zealand Hemp Industry Set To Generate $2 Billion Per Annum And Create 20,000 Jobs

A new report says a fully enabled hemp industry could generate $2 billion in income for New Zealand by 2030, while also creating thousands of new jobs. Written by industry strategist Dr Nick Marsh, the report has prompted calls from the New Zealand Hemp ... More>>

ALSO:

Stats NZ: One In 14 Employed People Report High Risk Of Losing Jobs

About one in 14 workers say they expect to lose their job or business by mid-2021, Stats NZ said today. A survey of employed people in the June 2020 quarter showed 7 percent felt there was a high or almost certain chance of losing their job or business ... More>>

ASB Quarterly Economic Forecast: NZ Economy Doing Better Than Expected, But Challenges Remain

August lockdown estimated to have shaved 8% off NZ’s weekly GDP, and 0.5% off annual GDP Economy now expected to shrink 5% (year-on-year) by end of 2020 Unemployment rate now expected to peak at 7.2% The latest ASB Quarterly Economic Forecast is less ... More>>

ALSO: