Tenon in exclusive talks to sell remaining NZ operations
The company today distributed $US71 million to shareholders.
Hot Topic
Hawke’s Bay
Tenon, which sold its US operations for US$110 million, is in exclusive talks with a potential buyer of its remaining New Zealand assets, which would see the former Fletcher Challenge entity wound up.
The company today distributed $US71 million to shareholders, cancelling one out of every two shares held and returning $2.20 per cancelled share, and has entered exclusive talks with one party with the goal of signing a sale and purchase agreement for its Clearwood New Zealand business, it said in a statement. If a deal is signed, surplus cash would be returned to shareholders and the company liquidated at an estimated cost of $US8 million.
"The proposal is conditional upon a number of items (including Tenon shareholder and court approvals) which Tenon is currently assessing," it said. "Grant Samuel will be asked to prepare an updated independent report to Tenon shareholders once final agreement has been reached."
The New Zealand business was valued at between $US63.3 million and $US74.1 million in independent adviser Grant Samuel's report on the US transaction. Its sales rose 5% to $US81 million in the year ended June 30 while earnings before interest, tax, depreciation and amortisation more than doubled to $US12 million.
Tenon said the Grant Samuel report will update the "average adverse currency movements" among other things.
Separately, Tenon said Rodger Fisher will leave the board at the end of the year and will be replaced by Wood Engineering Technology director Stephen Walker.
Tenon shares last traded at $2.20.
(BusinessDesk)
Paul McBeth
Fri, 23 Dec 2016
Fri, 23 Dec 2016
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Tenon in exclusive talks to sell remaining NZ operations
64097