GPG speculated to be in talks with Maori over CNI purchase

By NZPA

Wednesday 16th October 2002

Guinness Peat Group is tipped to come one step closer on Friday to purchasing the prized Central North Island Forestry Partnership (CNI) from receivers.

GPG is understood to be talking with a group of potential Maori equity partners able to stump up about $160 million towards the purchase, The Independent Business Weekly reported today.

Over 100 Maori groups have lodged claims with the Waitangi Tribunal over the seven major central North Island forests including the jewel, the 165,000ha Kaiangaroa forest over which CNI has the cutting rights.

Treaty Negotiations Minister Margaret Wilson said today she will meet with representatives of central North Island iwi on Friday as part of the Government's ongoing work to settle Treaty claims, including claims to Crown forest land. If claims are settled by granting Maori groups ownership of the forest land, that could be used as part of the Maori group's equity in any joint bid for CNI.

Ms Wilson said today the Government had received a number of proposals for progressing Crown forest land settlements. and "is always open to exploring new ways to achieve settlements at a faster rate".

A settlement proposal is expected to be discussed at Friday's meeting, opening the way for discussions between the 101 claimants and GPG about bidding for the forestry partnership, an industry source told NZPA.

The Maori forestry claims lodged with the Waitangi Tribunal over the seven central North island forests date back to 1990.

Rental for the forestry land of up to $24 million a year has been paid into the Crown Forestry Rental Trust while claimants wait for the treaty claims to be resolved.

The annual payments have been invested and interest from those investments can be used to fund Waitangi Tribunal claims.

GPG New Zealand director Tony Gibbs told NZPA today he would not comment about any negotiations, but reiterated GPG's interest in purchasing the CNI.

"There's a process I'm going through with the receiver, and when there's something to say, we'll say it," Mr Gibbs said.

"This is to do with offshore foreign governments wanting to buy New Zealand forestry, I'm not keen on that at all. I'm not against foreign investment, I'm against sovereign governments (investing)."

An unnamed spokesperson for Chinese government-owned investor Citic said on Monday the conglomerate was in talks to buy outright the assets of the massive forestry operation.

However, receiver Michael Stiassny of Ferrier Hodgson said yesterday he had not talked with Citic in the last month over the purchase of the 165,000ha asset.

The future ownership of the forestry partnership has been uncertain since August, when a deal between Fletcher Forests and Citic to buy the forests and three sawmills fell through.

Although the $US650 million ($NZ1.39 billion) bid was accepted by the receivers, it was voted down by shareholders, including GPG.

Under that deal Citic would have controlled Fletcher Forests with a 35 percent stake, which GPG opposed.

GPG is offering $67 million for a controlling stake in Rubicon, in which it already owns 20 percent. Rubicon is Fletcher Forests' biggest shareholder with 17.6 percent.

GPG's takeover offer for Rubicon, which closes on November 29, is opposed by Rubicon's independent directors.

Comments from our readers

No comments yet