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Highland Timber

  • BY: Andrew Hore |
  • POSTED: 27/08/2007 |

Highland Timber has agreed to sell its forest assets to FIM Timber Growth Fund IV for £12.5m three months after it agreed to sell them to the same fund for £9.9m.

Louis Dreyfus Energy Holdings subsequently offered £11.1m but FIM had been given exclusivity so Highland couldn’t accept the offer. However, shareholders voted against the FIM offer although they agreed the company‘s new strategy. That meant that Highland had to pay £70,000 to FIM in compensation for its fees. It held discussions with other parties before accepting the new FIM offer.
Highland will have £15m in the bank after the transaction.  That is equivalent to 121p a share. Shareholders owning 36.4% of the shares say they will vote for the latest disposal agreement unless another bidder is willing to pay at least £13.75m for the forest assets or 132p a share for the company.
Management is considering ways of returning some or all of the cash to shareholders. It is also looking for an acquisition in the forestry services or support services sectors. It has 12 months from the passing of the disposal to make an acquisition or it will have to ask shareholders if they want the company to continue. 

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