Elder’s pulpwood forestry assets soldFriday 27 Apr 2012 Elders has announced that it has signed agreements for the divestment of the large majority of its pulpwood forestry assets in the Albany, Bunbury and Green Triangle regions to investment funds managed by Global Forest Partners (GFP).The agreements, which are subject to a number of conditions, provide for the sale of approximately 12,400 ha of land as well as Elders-owned standing timber in those regions and its woodchip export facility at Albany. The agreements also provide for the conditional sale of some MIS grower-owned standing timber in those regions. Net cash proceeds to Elders are expected to be realised progressively and, subject to completion, to exceed AU$45 million. The gross sales value is undisclosed, but is expected to approximate book value. Elders Chief Executive Officer Malcolm Jackman said that agreements with GFP represented a substantial advance in the Company’s program to release capital from its forestry operations. “Today’s announcement, which encompasses some 12,000 ha of forestry land and the Albany port facility, represents the cornerstone transaction in the staged divestment of the Forestry business we announced in October. We now have sales or sales agreements in place for nearly two-thirds by area of the freehold land that we have targeted for divestment.” GFP, a US Securities and Exchange Commission registered investment advisor specializing in the structuring and management of sustainable forestry investments, has been actively investing in Australia on behalf of its investor clients since 1999 and currently has over AUD 3 billion in forestry assets under management worldwide. From Elders’ perspective, completion is targeted to occur, subject to satisfaction of a number of conditions precedent, by the conclusion of the June quarter 2012. The agreements signed with GFP will bring the total amount of forestry land that Elders has sold or contracted for sale since it announced its intention to withdraw from Forestry to a total of 32,000 ha. |
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