Rubicon gives green light for Tenon sale
Friday 19 Jan 2018Shareholders have voted in favour of Rubicon's proposal to sell a 45 percent stake in Tenon Clearwood Partnership, a large clearwood sawmill and manufacturing operation in Taupo, New Zealand.
In December it said the proposed buyers are Dorset Management Corp and Libra Partners NZ LLC, who will each take 20 percent, with the existing owners of the Clearwood partnership taking the remaining 4.88 percent. Dorset is affiliated with Rubicon's biggest shareholder Knott Partners, which owns 28 percent of the company, while Libra is its second-biggest investor with an 18 percent stake.
The sale will allow it to make two deferred-settlement payments for ArborGen, totalling US$15 million and which will now be Rubicon's sole asset. "We have great belief in the potential future upside in ArborGen," chair Stephen Kasnet said at a recent meeting. It will also put the company in a position to achieve significant cost savings, he said. Rubicon took full ownership of ArborGen in June, after buying out its partners for US$29 million.
ArborGen is a global leader in advanced forestry genetics and has a pre-eminent intellectually property position with a portfolio of advanced products that do not require regulatory approval, he said.
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