Tenon confirms second capital return of $321 million

Tenon today confirmed plans for a capital return of $321 million through a share cancellation.

The capital return would involve the cancellation of three out of every four shares in the company. Shareholders would receive $1.5333 for each share cancelled, which equates to $1.15 per share held before the cancellation.

This would be the company's second capital return this year, following a $350 million return in March.

The total of the two returns equates to $1.20 per share on issue prior to commencement of Tenon's forest sale process. In February Tenon sold all but 20,700ha of its 107,000ha forest estate to the Kiwi Group consortium for $560 million.

Subject to shareholder and court approval, Tenon expected the return to be completed by late February next year.

Shares in Tenon were up 1c at $2.25 early this afternoon, having ranged between $1.46 and $2.29 over the past 12 months.

- NZPA