Carter Holt says Wadepack bid successful

Wood processor Carter Holt Harvey today declared its takeover bid for Australian packaging company Wadepack successful, saying it had achieved shareholder acceptances in excess of 90 per cent.

Carter Holt said its A$2.70 ($2.96) a share off-market bid for the carton manufacturer was now free from all conditions.

Carter Holt's pulp, paper & packaging chief executive Rhys Jones said the company would now "move quickly to involve Wadepack management, employees and customers in integration activities".

He said Carter Holt was pleased that former 40 per cent shareholder and managing director Ashod Nassibian will continue in his role, "supporting a seamless transition for our customers and employees".

Carter Holt's offer consists of A$2.60 cash per share and two A5c a share dividends and closes on February 18.

Mr Jones said the positive response to the offer showed its value.

"I would now encourage all remaining Wadepack shareholders to act quickly and ensure payment for their shares within seven days of accepting," he said.

Mr Jones said the Wadepack acquisition was consistent with Carter Holt's strategy of "investing in higher-returning assets that deliver growth".

Carter Holt has said it hopes Wadepack and other recent acquisitions, including the Tenon structural sawmills, as well as a full year of earnings from Plantation Timber Products in China, will largely offset the loss of earnings resulting from the sale of its tissue business last year.

Carter Holt shares were unchanged at $2.25 in flat trade on the NZX this morning.

- NZPA