Two more resignations from Carter Holt board

Two more Carter Holt Harvey directors have resigned from the board following Graeme Hart's Rank Group becoming the company's new majority shareholder.

The move follows a board reshuffle on October 21, which saw the resignation of directors related to outgoing former majority owner International Paper. They were replaced by a new team led by Mr Hart.

Mr Hart's private investment company, Rank Group, bought International Paper's 50.5 per cent stake in Carter Holt for $1.7 billion. He has extended the $2.50 a share offer to all Carter Holt shareholders.

Kerry McDonald and Helen Nugent both tendered their resignations today. They were part of the team which recommended shareholders not accept Rank's offer because it falls short of the $2.55 to $2.95 valuation arrived at by independent appraiser Grant Samuel.

Their resignations will take effect at the close of the offer period.

Replacements for Mr McDonald and Dr Nugent have not been announced.

Chairman John Maasland remains on the board with new appointments Mr Hart, Mark Burrows, a director of Mr Hart's listed Australian food business, Burns Philp, and investment bank Lazard; Burns Philp director and managing director Thomas Degnan; Bryce Murray, also a director of Burns Philp as well as a senior executive of Rank; and Tim Hardman, Rank's operations head.

Mr Maasland said change was inevitable following the transition to a new majority shareholder.

Carter Holt today announced the completion of the sale of 94,300ha of its forests to an American-led consortium for $435 million.

Shares in Carter Holt were down 2c to $2.51 in morning trading today.

- NZPA