Forests no longer for sale

New Zealand's third-largest forest estate, Matariki Forests, has been withdrawn from sale.

United States forestry company Rayonier, Matariki's 40 per cent owner, had been hoping to sell the joint venture for up to $1 billion.

But a statement yesterday said shareholders would retain the assets, which include about 140,000ha of pine forest.

Rayonier NZ managing director Paul Nicholls said, "The shareholders believed continued weakness in the capital markets created uncertainty around funding."