Rubicon hangs onto Forests

Under the Fletcher stocks separation process Rubicon was given a right to put to Fletcher Building (NZSE: FBU) up to 117 million of its 267 million Fletcher Challenge Forests (NZSE: FFS) preference shares at 25 cents.

A deal at the maximum level would have netted Rubicon around $30 million, but the company says it has elected not to exercise its right.

Rubicon holds 492 million FFS shares representing approximately 17.6% of Fletcher Challenge Forest's issued share capital.

FFS shares have been trading in a narrow range between 30 and 33 cents for most of the year after reaching a low of 25 cents prior to last year's rights issue.

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