Enviro-friendly Australian fund bidding for Evergreen

An Australian investment fund bidding for most of Evergreen Forests Ltd's land and forestry assets was originally set up to capitalise on emerging renewable energy markets.

Evergreen is to consider the fund's offer at a special sharehoders meeting in September.

James Fielding Funds Management -- an arm of property group Mirvac -- set up Australian Sustainable Investments Fund (ASIF) to acquire land with forestry based rental income streams.

ASIF has a brief to add value with strategies such as carbon credit sales, renewable energy incomes and bio diversity and salinity credits.

James Fielding chief executive Adrian Harrington told AAP that as New Zealand is a signatory to the Kyoto protocol, the acquisition will represent a significant platform for ASIF to capitalise on emerging renewable energy and environmental services markets.

The purchase will expand James Fielding's forestry assets to $160 million on about 46,000 hectares in Australia and New Zealand.

Evergreen Forests Ltd shareholders have still to decide if they will accept the $104m bid for the company's North Island forest estate and freehold land.

The land covers about 25,600ha, of which 17,700ha are planted with radiata pine and are undergoing continual harvesting.

The bid for more than 90 per cent of the company's assets arose from a contestable sale process undertaken by investment banking advisors Forsyth Barr.

The sale is conditional on at least 75 per cent of shareholders voting in favour.

The purchaser must also obtain approval of its principal unit holders to the form and content of its debt financing documentation and must gain Overseas Investment Commission approval.

Once approval has been granted, Evergreen will propose to distribute net proceeds to shareholders, with an initial distribution by year-end.

Further distributions will follow the sale of remaining forest assets, conclusion of the warranty period and release of the retention.

Current estimates suggest the sale and proceeds from realisation of remaining assets will yield a range of 28c to 31c per share.

Evergreen shares were flat on 31c on opening after falling 26.19 per cent yesterday.

- NZPA