Forum Archive Index - April 2001

[Mick Clifton <Mick.Clifton@eskimo.co.nz>]

Thanks Greg & Gerry

Greg - Thanks for the article - Its interesting to read that the forestry could fetch 2 billion considering it was

purchased for 2.2 in 1996. That is presuming the price was based on log prices at the time.

From memory I think I read somewhere that log prices have dropped 30-40% since their highs some 4-5 years ago.

Given this any company paying 2 billion for the assets based on current log prices would be crazy.......I think?

Cheers Mick

-----Original Message-----
From: greg [mailto:gregoire@paradise.net.nz]
Sent: Friday, 20 April 2001 10:42
To: sharechat@sharechat.co.nz
Subject: Re: [sharechat] CNIFP

Mick,

the receivers (Ferrier Hodgson I believe), led by Michael Stiassny have yet to put the assets up for tender.  The latest reference I can find is the Herald article:

 

http://www.nzherald.co.nz/storydisplay.cfm?thesection=business&thesubsection=&storyID=178173

 

I check the Ferrier Hodgson website every now and then, and haven't seen anything.

 

I can't see FFS entering into another partnership with anybody at the moment (except perhaps RBC).  It would seem plausible that FFS will show some interest in the assets up for grabs as they are one of the chief creditors of the defunct CNIFP being owed US$225m.  However, it is going to be most interesting to see who else may show an interest.  CAH have already signalled they are interested, but I wonder whether CITIC or RBC might get twitchy fingers at the auction.  If CITIC show an interest I believe this means that they still want to be a player in the NZ Forestry scene and will eventually go after FFS, RBC or CAH.  In my opinion CITIC was just testing the waters with the CNFIP in the first place - it was doomed from the outset.

 

Regards,

greg

 

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