ArborGen on track to more than double earnings
Friday 9 Mar 2018Rubicon shares rose 9.1 percent after chief executive Luke Moriarty told shareholders its sole asset ArborGen is on track to more than double annual earnings. "We have great belief in the potential future upside in ArborGen," Moriarty told shareholders at the annual general meeting in Wellington, according to speech notes published on the NZX.
Last June, the NZX-listed forestry investor took full ownership of ArborGen, agreeing to pay International Paper and WestRock US$28.5 million in three instalments. It has paid US$18.5 million to date with a final US$10 million instalment due in July.
On Jan. 31 it closed the sale of its 45 percent stake in Tenon Clearwood Partnership for US$15 million, which allowed it to pay Rubicon's outstanding subordinated debt and gives it the headroom to make that final payment. ArborGen - which sells and develops advanced genetic seedlings to improve forest productivity - is now Rubicon's only asset.
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