Correction on the Gunns purchase offer for the land it is $500,000,000,not $650,000,000.
good they have concerns for the small bussiness's,
bit disconcerting over the statement on financing though with existing facilities,
But still with Gunns on enviroment and the muscle to to keep great former ABC garden chief Peter Cundall quiet and not to take him to court all I can say is Quote"that is your bloomin lot"end quote
Buyer of choice found? 26 Nov, 2009 09:41 AM AUSTRALIA’S largest, fully-integrated, hardwood-based forest products company has emerged as the “buyer of choice” for the failed plantation timber company, Great Southern Limited. Gunns Limited is involved in final negotiations with Great Southern’s receivers McGrathNicol to become the replacement responsible entity of all or a majority of the plantation schemes.
Gunns CEO Greg L’Estrange said the proposal was a compelling offer that would provide certainty to Great Southern’s grower-investors.
“Our proposal will cause minimal disruption to the operation of the schemes, supported by Gunns’ strong financial position and experience in the management and operation of plantations under managed investment schemes,” he said.
Early estimates of the amount needed to manage all 11 timber plantations to production was $160 million, with $500 million to buy the land from the banks.
If successful, Gunn’s involvement could provide a much-needed boost to the plantation timber industry in Albany and the region.
Many small businesses have been struggled after Great Southern and Timbercorp’s collapse.
It resulted in the loss of business operators and experienced workers.
The negotiations between Gunns and McGrathNicol comes soon after WA company Pulpwood Plantations (PPPL) revised its offer to growers of 1998-2007 plantation schemes to be put at a meeting on December 10.
PPPL chairman Gordon Martin said he was concerned about how the process of finding a suitable buyer had been drawn out by McGrathNicol.
Gunns said it would fund the acquisition of the liquidated assets from cash at hand and existing facilities.
The funding requirement of the potential acquisition of assets from the administrator is yet to be determined.
Gunns would fund the costs of managing the plantations and operating the schemes through to harvest from internally generated cash flows.
Growers meetings to vote on the proposal will be held on December 23.
Government statistics confirmed forest industries remained resilient to the effects of the global economic crisis.
Despite a 15 per cent fall in woodchip exports in 2008-09, their value only fell by seven per cent.
Imports of Australian woodchips to China increased by 74 per cent and are expected to continue.
GTP Price at posting:
12.0¢ Sentiment: None Disclosure: Not Held
