NZ stocks: Investors' eyes on next forest chapter

By PAUL PANCKHURST

An update on Fletcher Challenge Forests' efforts to sell its forestry estate - book value $1.2 billion - is expected when the company reports its annual result on Friday.

The company told brokers it would hold off until as late as possible in the reporting season to increase the odds of having some news on the sales process.

After the August 8 deadline for indicative bids for the 106,000ha forest estate, market sources said only two contenders had emerged.

One market player told the Business Herald that would have been disappointing for Fletcher Forests.

The identity, quality and resolve of the bidders remain unknown and it is not the only large forestry estate up for sale.

Another notable example is the 165,000ha estate of the Central North Island Forestry Partnership and across the Tasman the New South Wales State Government is looking at putting 582,000ha up for grabs.

Fletcher Forests' move is intended to unlock the value in a company that has a market capitalisation of $213 million.

The company announced in June that it was putting its entire estate on the block - a big step towards becoming the forestry company with no trees. It is aiming to hand a big chunk of the proceeds to shareholders before year's end.

Bloomberg says annual results are also due this week from Air New Zealand, Auckland International Airport, INL, Port of Tauranga, Sky City Entertainment, and Tourism Holdings.