Evergreen to sell shell company

Former forestry investor Evergreen Forests has received an offer for its shell company.

Evergreen said Highlander Trusts Ltd (HTL) has offered to buy all its shares at an offer price of 33c per share, valuing the company at around $12.5 million.

On May 4, HTL secured shareholder approval to buy 57.5 per cent of Evergreen, conditional on a full takeover offer being launched by May 9.

Under New Zealand takeover rules, a purchaser buying more than 20 per cent of a company's shares must extend the same offer to all shareholders.

Evergreen has appointed independent directors, chairman Peter Wilson and Paul Fowler, to oversee the offer and arrange an independent report.

Forsyth Barr will advise Evergreen on the takeover.

The HTL offer is expected to be mailed to shareholders in the week beginning May 22, along with a target company statement, the independent directors' recommendations and the adviser's report.

Shares in Evergreen, which last year sold its forestry and land assets to Australian fund manager James Fielding Funds Management for $115 million, last traded on Friday at 33c against a year high of 43c and a low of 23c.

- NZPA