The Tasmanian ExaminerGreat Southern growers approve Gunns MIS...

The Tasmanian Examiner

Great Southern growers approve Gunns MIS bid
23 Dec, 2009 06:07 PM


TREE growers in eight managed investment schemes operated by failed company Great Southern have voted to approval Gunns Ltd takeover of the schemes.

Gunns Plantations Ltd will become the responsible entity for the schemes with one Great Southern group still to vote on the proposal.


It is understood the Great Southern schemes includes approximately 42,000 hectares of plantation in the Green Triangle region of south-west Victoria and south-east South Australia.



"It is open to Gunns and the receivers to agree to complete the transfer process for the eight schemes which have approved the proposal notwithstanding that the 2006 scheme has not yet given its approval," Gunns said in a statement to the ASX.


"The parties intend to proceed to complete the process once orders giving directions in relation to the implementation of the resolutions have been received from the Victorian Supreme Court. An application for those orders has commenced and is expected to be heard shortly."



Gunns had earlier said that the cost of managing the plantations, expected to cost $100 million over 11 years, would be funded from internally-generated cash flows.


The company would receive between 4.5 per cent and 55 per cent of net harvest proceeds as responsible entity.


It expects to harvest 540,000 green metric tonnes of pulpwood from the schemes in 2010 and that figure would grow to 2.8 million green metric tonnes in 2017.


The investment has been in the pipeline since Great Southern went into administration in May.


Gunns said today the transaction provides it with a highly complementary hardwood operation and was a signifiicant development in the company's objective of moving to a plantation based business.