Rubicon succeeds with Tenon takeover

10.30am

Rubicon today said its partial takeover offer for wood processor Tenon had succeeded, with acceptances received for 58 per cent of the company.

The company said it would scale back acceptances in excess of the 50.1 per cent it was aiming for.

Rubicon chief executive Luke Moriarty said: "This is a great outcome, and we now look forward to creating further value for Rubicon and Tenon shareholders".

Yesterday, as Rubicon started the day with 43.8 per cent acceptances, the country's largest fund manager AMP Capital Investors decided to accept Rubicon's $1.95 a share offer for less than half of its 6.85 per cent holding leaving the bid's success in the hands of smaller investors.

Mr Moriarty said there had been a very strong level of retail acceptances on the closing day of the offer.

Analysts had said a boardroom purge was expected if Rubicon's bid succeeded.

Rubicon is a holding company for Fletcher's old forest technology assets, while Tenon was formerly known as Fletcher Challenge Forests.

Tenon shareholders who accepted the offer would receive payment from Rubicon within seven days.

Tenon shares were down a cent to $1.91 in early trade today while Rubicon shares were unchanged at 84c.

- NZPA