Gunns now reviewing forestry asset sales

Gunns Ltd told the Australian Securities Exchange on Monday that it is reviewing the value of its forestry assets in the light of declining prices in the woodchip market. The company said its asset value review included the Tasmanian Forest Estate, which comprises 200,000 hectares of hardwood plantations.

The company said the declining woodchip market has forced a review of the value of the asset. The review is still underway and the company has not said how long it will take. Gunns said it would provide more details once the analysis was complete. In relation to the proposed AU$400 million capital raising underway to cut debt and support the development of a controversial AU$2.5 billion pulp mill at Bell Bay in Tasmania Gunns said it was still continuing talks with various potential investors.

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