SA timber sale could fetch AU$600mThursday 22 Dec 2011 As the year comes to a close, things in South Australia are heating up. The sale of ForestrySA's forward cutting rights is looking to be a hotly contested process, with at least six North American buyers showing keen interest, The Australian Financial Review reports.UBS and SA Treasury are just back from a 10-day North American tour where they were talking up the top quality forestry assets located in the "Green Triangle" region between SA and Victoria. According to the SA Forestry Corp annual report, standing timber was valued at more than AU$720 million as at 30 June. It is estimated that a deal might be struck between AU$500 million and AU$600 million. Boston-based Hancock Timber Resource Group (which bought the rights in 1998 to log Victoria's plantations for 99 years) tops the possible buyer list. The group this week won clearance for a purchase from the competition watchdog, albeit with the state government committing to a few conditions of sale which would limit Hancock's ability to alter the quantity of timber supply and limit its ability to increase softwood timber prices in the Green Triangle. |
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