Fletcher deal fair, says valuer

By CHRIS DANIELS

An independent valuer has blessed Fletcher Challenge Forests' plan to buy the $1.3 billion Central North Island Forest Partnership (CNIFP) assets.

Grant Samuel and Associates say the plan, yet to be approved by shareholders, is fair and reasonable.

Fletcher announced the news to the Stock Exchange yesterday, three days before it makes public the full report investigating the CNIF deal.

It said that " ... in Grant Samuel's opinion, the company's proposed acquisition of the assets of the CNIFP and associated arrangements involving Seawi and Rubicon Limited were fair and reasonable".

Seawi is the Hong Kong-listed company that Citic, the investment arm of the Chinese Government, is using to buy into Fletcher.

It will pay $413 million for a 35 per cent stake in Fletcher. That money, plus bank loans, will pay for the 163,000ha forest.

Citic will also pay Rubicon cash for its Fletcher shares. Fletcher will swap a forest for the rest of Rubicon's 17.8 per cent stake.



A full information memorandum and the Grant Samuel report will be released to the Stock Exchange at 8.30am on Monday, when it will also be posted on the Fletcher website.

Shareholders will vote on the deal when they meet in Auckland at 2pm on August 13, in the ASB Bank Stand at Eden Park.

Fletcher Challenge Forests