Fletcher Forests deal called fair and reasonable by Grant Samuel

By NZPA

Thursday 18th July 2002

Fletcher Forests said its complex deal to buy the Central North Island (CNI) forest estate has been called "fair and reasonable" by independent adviser Grant Samuel and Associates.

Fletcher Forests said in a statement today that the Grant Samuel report covered the proposed forests acquisition, and associated arrangements involving Chinese government-owned Citic, its subsidiary Seawi, and Fletcher Forests shareholder Rubicon.

Fletcher Forests commissioned Grant Samuel to review the proposed transaction in the light of market regulations in New Zealand and Australia.

Shareholders will meet to vote on the proposed deal will on August 13, and Fletcher Forests will send out a full copy of the report on Monday.

Fletcher Forests said this week it had secured $US600 million ($NZ1.3 billion) in new bank loans to fund the purchase of the CNI forest estate.

Fletcher Forests and the Chinese government-owned Citic, through a Hong Kong subsidiary company Seawi (South East Asia Wood Industry Holdings), want to buy the 163,000ha Central North Island Forest from receiver Michael Stiassny.

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