----- Original Message -----
Sent: Friday, 17 August 2001 10:41
Subject: Re: RE: [sharechat] fletcher
forists
No. The debt referred to is what the CNIFP
owes FFS. It appears as an asset on the FFS books. This asset is
now worth less.
Rgds,
greg
Correct Paul & Noriko
-----Original
Message-----
From: Paul and Noriko [mailto:pan@muh.biglobe.ne.jp]
Sent:
Saturday, 18 August 2001 13:48
To: sharechat@sharechat.co.nz
Subject:
Re: [sharechat] fletcher forists
Correct me if I'm wrong but if the
FFS debt is in $US then if the $US is
weakening, it can be paid off with
less $NZ right - therefore it should be
positive....?
----- Original
Message -----
From: greg <mailto:gregoire@paradise.net.nz>
To: sharechat@sharechat.co.nz <mailto:sharechat@sharechat.co.nz>
Sent: Friday, 17 August 2001 10:00
Subject: Re: [sharechat] fletcher
forists
Graeme,
from what I can gather Fletcher Forest's NTA is
about 58cps. This figure
uses market valuation of the forest estate
but assumes the company will
recover all of its US$225m debt from the CNIFP
sale.
The receivers in charge of the CNIFP are actively seeking bids
(with the
help of FFS it seems). The biggest influence on the share
price in the
short term is likely to be this sale process. If the
assets are sold so
that FFS can recover the whole US$225m (or even more)
then there is likely
to be a substantial rise in the share price. On
the other hand if FFS can
manage to put together a consortium to buy the
assets then the price will
also rise - but possibly not as sharply as if
another company bought the
assets outright (FFS would then be a clear
takeover target as current
manager of the CNIFP forest).
The current
price has drifted down from 34c again, possibly this time due to
the
weakening US dollar. I think the debt remains in US currency so FFS
is
in effect slightly worse off (can anybody confirm this?)
Rgds,
greg
disc: Own
FFS
See IRG research reports
