Pulpwood Land and Asset Sale Completed
Elders (ASX:ELD) announces that the forestry asset sale agreement announced to the ASX on 18 April 2012 has been completed today. Final net cash proceeds will be subject to transaction costs and are expected to approximate $60 million.
The transaction has effected the sale of the large majority of Elders’ pulpwood forestry assets in the Albany, Bunbury and Green Triangle regions to an investment fund managed by Global Forest Partners.
Managing Director Malcolm Jackman said “this transaction is the most significant of the Forestry divestment program and means we have now completed the sale of over 33,000 hectares of the [50,000] hectares of freehold land held at the start of the program.
“The divestment process is highly complex as it involves a multitude of different MIS projects, different harvest profiles and a mixture of timber types and land ownership and leases. However, as is evidenced by today’s completion, we are progressing.
“We can now concentrate our efforts on the remaining assets and operations, the divestment plans for which are at various stages of maturity” Malcolm Jackman said.