01 Oct 2009
Timbercorp's forestry assets have been sold for about $345 million to Australian Bluegum Plantations, a wholly owned subsidiary of US timber investment fund Global Forest Partners.
Timbercorp liquidator KordaMentha said the winning bid's offer was so much better than the next best offer that even if it was not able to recover the shortfall from the sale of the olive assets it would be in the best interests of growers to accept it.
The liquidator received seven bids for the forestry assets and Australian Bluegum Plantations' bid was the highest and best bid by far, it said. Other bidders included Tasmanian timber company Gunns and TC Growers, a consortium comprising industry superannuation fund First Super, an unnamed international investor, the Penola Pulp Mill and the management of Timbercorp Forestry.
Timbercorp went into voluntary administration on April 23 after buckling under too much debt. At the end of June, creditors voted unanimously to wind up the 41 companies in the group. Timbercorp's forestry assets include nearly 100,000 hectares of eucalyptus plantations.
Source: Sara Rich, The Australian, 1 October 2009.