The Australian forestry industry continues to consolidate. Integrated Tree Cropping Ltd of Perth made a $A9.15 million bid this week for the 50.13% of Australian Plantation Timber Ltd it doesn’t already own.
The bid is 1:6 or 23c in cash/share. Australian Plantation Timber increased its net asset backing from 2A21.4c to A22.9c in the June 2004 year. The consolidation would double Integrated’s size to total assets of $A313.8 million, net assets of $A218.9 million
Integrated Timber Cropping merged in September with the Neville Smith Group Pty Ltd, of Victoria & Tasmania, to give it a total 100,000ha of plantations under management. Futuris Corp Ltd (owner of the Elders business in Australia) controls 51.3% of Integrated through Hatmore Pty Ltd, but its interest would slip to 49.6% under this proposal.