Forum Archive Index - July 2001

["Graeme Tangye" <gtangye@paradise.net.nz>]

Mike G.

I think the figures you have used exclude the rights issue, which had a very
significant affect on nta!

Perhaps (169c + 50c) / 3 = 73c is a more accurate starting point.

Less the 25c coming from the move to "market value" basis (FFS books have
for a long time had only a vague relationship to reality).

73c - 25c = 48c.

But with current log prices I think we need a further discount. So perhaps
around 40c seems reasonable.

FFS reported nta is based on the value of CNIFP being $NZ510M odd, being the
second tier debt plus some interest.  If those assets sell for less than the
primary $US640M debt  + FFS $NZ510M then FFS take a loss.  Anything more and
the excess is, I believe, split between FFS and CITIC.

Cheers
GT


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