Greenheart Group credits transfer of business from Sino-Forest for business improvement; New Zealand unit, which operates 13,000-hectare Mangakahia Forest, saw 60% boost in annual harvest in 2012 to 558,550 m3, 35% increase in sales to US$37.7M
May 29, 2013
(Industry Intelligence Inc.)
– Greenheart New Zealand, which operates the 13,000-hectare Mangakahia Forest in the North Island, ramped up its annual harvest in 2012 by 60% to 558,550 m3, sales up 35% to US$37.7M, most of it (some US$34 million) exports, ShareChat reported on May 28, citing the company’s 2012 accounts.
The increase was achieved during a year in which New Zealand’s total exports of logs and wood fell 1.2% in value to NZ$3.16 billion (about US$2.56 billion at current exchange rates), according to government figures, ShareChat noted.
Greenheart NZ is a unit of Hong Kong-listed Greenheart Group Ltd., once controlled by failed Toronto-listed Chinese forestry corporation Sino Forest Corp., which filed for bankruptcy protection in Canada in March 2012.
Under a plan agreed by Sino-Forest’s creditors, its assets were transferred to Emerald Plantation Group Ltd. (EPGL), a company incorporated in the Cayman Islands that is owned by the creditors. The transfer included 66.6% of Greenheart Group, triggering a requirement for EPGL to make an offer for the remaining shares, which it did in January 2013.
In a recent financial release, Greenheart Group noted that, on the closing of the mandatory general offer (MGO) on March 21, EPGL announced it owned a total of 496,189,028 shares in Greenheart, representing about 62.82% of the issued share capital of the company. “This level of acceptance did not meet the requirements for compulsory acquisition under the relevant rules and Greenheart continued to maintain its listing of shares on the Main Board of the Stock Exchange,” the April 8 financial release noted.
However, in the same release, Greenheart Group’s CEO Judson Martin said that, “despite the challenges our company encountered as a result of the ongoing restructuring of our former largest shareholder, we saw a year of growth in all our business units. Effective January 31, 2013, substantially all of the assets of our former largest shareholder, including a 63.55% equity interest in Greenheart, have been transferred to a new ownership group. Although the long -term plans of the new ownership group are not yet entirely clear, the distinct disassociation of Greenheart from the substantial problems surrounding our former largest shareholder is a positive step forward.”
The Mangakahia Forest was among the assets transferred from Sino-Forest to EPGL as part of the asset transfer deal with Sino-Forest's creditors, acquired by Greenheart from Sino-Forest in 2011 for US$73 million in shares and debt, ShareChat reported.
The primary sources of this article are ShareChat, Auckland, New Zealand on May 28, 2013, and press releases on the website of Greenheart Group Ltd.