Gunns looks to complete woodchip facility saleGunns is in discussions with the preferred bidder for the sale of its Port of Portland woodchip facilities as the troubled timber company races to finalise a deal ahead of a June 30 deadline, the Australian Financial Review reports. Sources suggest Port of Portland will be sold to a Global Forest Partners (GFP) subsidiary, Australian Blue Gums, and may fetch two to three times the AU$25 million Gunns spent to construct the facility in 2009-10.
This implies a sale price of up to AU$75 million, delivering much needed cash for the company. About AU$25 million in capital expenditure is also required to expand capacity. Its location is attractive to buyers because Port of Portland is ideally positioned for export to Asia. GrainCorp and South West Fibre (a joint venture between Midway of Geelong and Japan's Mitsui) operate the other woodchip facility at the port. The Australian Competition and Consumer Commission's informal review into its desired purchase was recently terminated.
Source: Queensland Country Life
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