|
 |
Contents |
|
|
| Highland Timber sells off New Zealand assets |
|
2005/12/9
Quoted forestry minnow Highland Timber is selling assets in New Zealand to pay down bank debt and help boost a troubled balance sheet.
The Alternative Investment Market-listed company has agreed to sell freehold and forestry rights interests to a New Zealand pension fund for NZ$9,710,000 (£3.95m), plus goods and services tax. The deal is subject to the settlement of Highland's outstanding New Zealand bank loans of £1m with the Bank of New Zealand.
Commenting on the transaction, Highland chief executive Oliver Waring said: "The sale of Highland Timber's New Zealand forestry assets provides an excellent opportunity for the company to withdraw from a continuing difficult operating environment for forest owners, repay relatively costly NZ-denominated bank loans, remove its exposure to the New Zealand dollar at current rates of exchange and better focus on the ongoing management of the company's UK forests." Highland Timber posted a £413,000 pre-tax loss on sales of just £562,000 in its most recent half-year results, for the six months to June 30.
Highland, which has six forests in the UK, including Myredykes near Langholm in the Borders, said standing timber prices have continued to fluctuate in Britain, while increased restocking had increased expenses. The group has indicated that it will also seek to sell some UK assets.
A £1.6m capital raising earlier this year brought in Zatto Group, a Luxembourg vehicle of the Waring family.
Highland's shares climbed 6% by late trading to 56.5p.
|
| Source:http://www.theherald.co.uk/business/52152.html |
|
|
