Timber consortium sells AMP a stake in NZ forests

AMP Capital Investors Ltd has bought a 35 per cent stake in United States forestry company Rayonier Inc's New Zealand timber consortium, the Jacksonville Business Journal says.

The consortium, which included the global investing arm of Deutsche Asset Management, sold the stake.

The stake included a 9.7 per cent interest owned by Florida-based Rayonier, which said the deal would result in net cash proceeds of US$22 million ($36.4m).

The deal provided Rayonier with an after-tax gain of about US$6 million, or US8c per share, including US$5 million of previously-deferred gain.

Rayonier announced in April it would continue to manage its 143,258ha forest estate, the third-largest in New Zealand, and hold a 40 per cent stake in the consortium.

- NZPA