23 Dec 2016

Tenon looking to sell last remaining asset

4:28 pm on 23 December 2016

Wood products company Tenon is facing the possible sale of its last remaining asset and is winding up its business.

Pine Forest

Tenon is looking to sell its Clearwood operation, which specialises in pine products. Photo: 123RF

The company has confirmed that it is now looking to sell its New Zealand-based Clearwood operation, after just completing the sale of its North American business.

Tenon said it was talking exclusively to one party with the aim of signing a binding sale and purchase agreement for the Clearwood business, subject to certain conditions.

"If Clearwood is sold, Tenon will have no remaining operational assets," the company said in a statement to the New Zealand stock exchange.

"Accordingly, the company would then be liquidated, with all surplus cash returned to shareholders."

Tenon is the last remnant of Fletcher Forests, which was created by the break up of the Fletcher Challenge industrial empire in the 1990s. It is controlled by another Fletcher's offshoot, Rubicon.

It has a sawmill and processing plant in Taupo, turning out high grade radiata pine products.

Tenon said advisory firm Grant Samuel will do an updated independent report for shareholders once a final agreement has been reached.

The New Zealand business had previously been valued between $91 milliom and $107m.

Tenon also confirmed it has paid out the proceeds of the sale of its North American business, with US$71m being returned to shareholders through a cancellation of one out of every two shares held and returning $2.20 per cancelled share.

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