With doubts over future government restrictions on tax deductions on horticultural products (note TIM's main projects still remain Timberlots where tax ruling has been confirmed), I believe recent market consolidation (Gunns/Auspine) was inevitable. There are great economies of scale in agriculture.
TIM has already advised that over the past few months, it has been approached on a confidential basis by parties interested in exploring an acquisition or merger transaction with Timbercorp.
How which companies in this space would have the scale and assets that would interest timbercorp (or absorb Timbercorp).
Gunns (GNS) already mentioned above Great Southern (GTP) Macquarie Bank (MBL)
I think macquarie is an interesting one given recent forays into the sector, and their continual search for annuity style income streams of which TIM has been most sucessfull in setting up.
Also interesting that the Victor Smorgon Group recently made a large investment in one of the companies projects.
This is IMO only.... Anyone elses thoughts quite welcome.
TIM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
