Kiwi Forest Group fails to confirm $165m of financing on time

2.00pm

Fletcher Challenge Forests (FCF) today said Kiwi Forest Group had failed to confirm financing plans for part of its $725 million forest estate sale.

Kiwi had agreed to buy the rights to the Tarawera forest for $165 million, but failed to confirm its financing with FCF today.

Chief executive John Dell said FCF was "naturally disappointed" at the outcome, however FCF would still seek shareholder approval for the balance of the $725 million sale to go ahead.

The Tarawera forest -- a "high quality, mature forest estate" -- would be offered to a rival bidder, United States company The Campbell Group.

Meanwhile, there were no financing conditions attached to the balance of the estate being sold to three buyers.

The buyers are Kiwi, The Ontario Teachers' Pension Plan and Viking Global New Zealand.

FCF would be seeking approval for that sale at a special shareholders meeting in Auckland on February 20.

- NZPA