Rubicon crosses to US dollar

Luke Moriarty

Wood processing and biotech investment firm Rubicon has adopted the United States dollar as its functional currency.

CEO Luke Moriarty said yesterday that the company had done so because all of its investments were US dollar-based.

The investment company's 50 per cent subsidiary, Tenon, moved to the US dollar last month and Rubicon has a large investment in the US forestry biotechnology joint venture ArborGen.

ArborGen was set up in 2000, with International Paper, MeadWestvaco and Rubicon each owning 31.67 per cent and Genesis Research holding 5 per cent.

"We also have an Argentine forestry operation, which is also driven by the US dollar," Moriarty said. "It makes perfect sense for us."

Last week, Tenon said reporting in greenbacks would allow for greater transparency, given that most of its business was based in the US.

"Going forward, this will provide shareholders and potential investors with clearer measures of the underlying performance of the company's business," it said.

Rubicon said it had converted $64 million in New Zealand dollar-denominated cash deposits into US$45 million as a result of the change.

- NZPA