Timbercorp’s forestry assets have been sold for about $345 million to Australian Bluegum Plantations, a wholly owned subsidiary of US timber investment fund Global Forest Partners, The Australian reported. The company intends to set up its headquarters in the Green Triangle region of Victoria and South Australia, and in southwest Western Australia and retain the employees currently working for Timbercorp's forestry business. About $200 million of the sale proceeds have been allocated to about 10,000 so-called growers who invested in Timbercorp's woodlots. In an unusual move, $25 million of that will go to the Commonwealth Bank to repay its loans to Timbercorp's forestry and olive businesses. In return, the growers will become secured creditors on $25 million worth of Timbercorp's olive assets. Bidding for the olive assets is in the final stages and a sale is expected in coming weeks. Read more.
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