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


Maritime Union: Deepening Supply Chain Crisis Requires Action

Maritime Union of New Zealand National Secretary Craig Harrison says the global COVID-19 pandemic exposed pre-existing weaknesses in our logistics sector, and created enormous problems... More>>

Air New Zealand: Employees Recognised With $1,000 Share Award

The efforts Air New Zealand employees made during one of the airline’s toughest years will be recognised via an award of $1,000 worth of company shares to all permanent employees... More>>

Consumer NZ: Bank Complaints On The Rise, Survey Shows

Nearly one in five Kiwis had a problem with their bank in the past year, Consumer NZ’s latest satisfaction survey finds. Consumer NZ chief executive Jon Duffy said the number of bank customers reporting problems had jumped to 18%, up from 11% in 2020... More>>

Mercury: Enters Into Binding Agreements To Acquire Trustpower’s Retail Business

Mercury NZ Limited (Mercury) has announced that it has entered into binding agreements with Trustpower Limited (Trustpower, NZX:TPW) to acquire Trustpower’s retail business for NZ$441 million... More>>


ASB: New Zealanders Missing Out On Hundreds Of Millions In KiwiSaver Government Contributions

New Zealanders have just over a week to ensure they’re eligible for the maximum annual government KiwiSaver contribution... More>>

Stats NZ: GDP Climbs 1.6 Percent In March 2021 Quarter Following December Dip

Gross domestic product (GDP) rose by 1.6 percent in the March 2021 quarter, following a 1.0 percent fall in the December 2020 quarter, Stats NZ said today. "After an easing of economic activity in the December quarter, we’ve seen broad-based growth in the first quarter of 2021... More>>