Fletcher asks court to clarify rule on forest sale

Fletcher Challenge Forests is heading to the High Court seeking an opinion on how much shareholder support it needs for a plan to sell its forests.

In dispute is whether its sale plan needs a yes vote from 75 per cent of shareholders (a special resolution) or 50 per cent plus 1 (an ordinary resolution).

The company thinks it needs only an ordinary resolution, but said yesterday that because some shareholders are disputing this, it will have the matter decided by a judge.

An independent Queen's Counsel will be appointed to make the case for those who think a 75 per cent vote is needed.

Fletcher is evaluating offers from The Campbell Group, a US-based timber management company, and Kiwi Forests, a consortium of local investors and US-based Prudential Timber Investments, another timber management company.

Bids up to $725 million are expected for its 106,000 hectares of forest.