Updated 29 September 2005
The Overseas Investment Office approved James Fielding Funds Management Ltd’s $115 million purchase of Evergreen Forests Ltd’s forest estate today and the agreement approved by Evergreen shareholders at on Monday 26 September is now unconditional.
Original story: 3 votes send Evergreen to Mirvac fund, early notes redemption planned
Published27 September 2005
After 12 minutes of formalities yesterday, Evergreen Forests Ltd’s 12 years as a forest & landowner was over. All it took was the votes of 3 men representing 3 large US interests.
That guaranteed more than the required 75% support for the resolution to sell 90% of Evergreen’s assets to Australian investor James Fielding Funds Management Ltd. Evergreen chairman Peter Wilson didn’t even bother seeking opposing votes â€“ there was no point.
James Fielding Funds Management, a division of Australian property developer & hotel owner Mirvac Group, will buy the assets for $115 million, after being forced to raise its original $104 million bid by a backup offer of $112 million from the NZ Super Fund.
The sale remains conditional on Overseas Investment Office approval, with settlement planned for 31 October.Mr Wilson said directors would now work on a recommendation on how to distribute proceeds to shareholders and how to sell residual assets.
“It will be disappointing to shareholders, I know, to have invested in a company that hasn’t really provided anything close to an adequate return,” Mr Wilson said.
Following the shareholders’ sale decision, Mr Wilson said today the company would facilitate a process that could see early redemption of the convertible notes.
Anticipating Overseas Investment Office approval & the 31 October settlement, Mr Wilson said a meeting of noteholders would be called to consider a change to the trust deed enabling early redemption of the notes at their accrued value. This would provide for payment soon after the expected completion of the sale of assets set for 31 October. With accrued interest, the redemption value at mid-November would be $1.5821.
21 September 2005: Evergreen supports new James Fielding bid
14 September 2005: 41% Evergreen shareholder opts for Super Fund bid
13 September 2005: Fielding gets funding OK for Evergreen bid
27 August 2005: Cullen Fund makes backup bid for Evergreen
27 August 2005: Evergreen loss increases to $18 million as new bid made
22 July 2005: Evergreen talks wind-farming as it ponders forests sale
13 May 2005: Evergreen bidders go to due diligence
15 January 2005: Evergreen calls in investment bankers to advise on its future
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