Rubicon, the NZX-listed forestry biotech company, has agreed to sell its remaining holding in its Clearwood manufacturing business for about $15.3 million, to focus on its ArborGen forestry genetics business.
Auckland-based Rubicon will sell its 44.88 per cent interest in Tenon Clearwood Ltd Partnership for US$14.2m, which is the cost of its investment in the company in April, plus its share of the reduction in the company's net debt since then, it said in a statement.
The proposed buyers are Dorset Management Corp. and Libra Partners NZ LLC, who will each take 20 per cent, with the existing owners of the Clearwood partnership taking the remaining 4.88 per cent, it said.
Dorset is affiliated with Rubicon's biggest shareholder Knott Partners, which owns 28 per cent of the company, while Libra is its second-biggest investor with an 18 per cent stake.
Rubicon has been exiting its peripheral investments to focus on its ArborGen business, which it believes will benefit from the new Labour-led government's policies to support the forestry sector and expand afforestation.