NZ Super Fund bid likely to secure Evergreen

The New Zealand Superannuation Fund looks set to nab the bulk of Evergreen Forests' land and forests after Evergreen's largest shareholder said it would back a $112m bid by the fund.

The US-based Ohio Public Employees Retirement System (Opers), which holds a 40.6 per cent stake in Evergreen, said it would back the NZ Super Fund proposal at a special meeting to be held in Auckland on September 26.

The announcement effectively stymies an earlier $104.2m bid for Evergreen's North Island forestry assets by Australian investment fund James Fielding Funds Management. James Fielding needed to secure approval from 75 per cent of Evergreen's shareholders to succedd.

NZ Super Fund put in its $112m bid as a back up if James Fielding failed to gain enough support.

The NZ Super Fund offer is for North Island forest and land, as well as the Pakawau and Pupu forests in the South Island.

Opers said it based its decision to back the NZ Super Fund bid on a recommendation by its investment adviser Global Forest Partners.

Opers said the Super Fund's back-up offer beat the James Fielding offer by about 14 per cent on a net per-share basis.

Shares in Evergreen were unchanged at 32c in morning trading today, having ranged between 24c and 43c over the past 12 months.

- NZPA