Forestry company considers sale of all assets

The shareholders of Matariki Forests, managed and 40-percent owned by Rayonier New Zealand, are exploring the sale of their New Zealand assets.

Matariki Forests owns the country's third-largest forest estate, comprising 140,000ha of radiata pine throughout New Zealand. It bought 95,000ha of forests from Carter Holt Harvey for $435 million, and forests owned by Rayonier were also put in the venture.

Favourable valuations of the estate over the last three years, as part of a strategic review, had prompted the owners to explore a sale, Rayonier NZ managing director Paul Nicholls said.

"This hasn't been triggered by any unsolicited offers, it's a decision by the shareholders to go and test the market," he told NZPA.

Favourable factors were the declining New Zealand dollar, medium term forecasts of falling shipping prices into Asia, and restrictions on the supply of Russian logs into markets, Mr Nicholls said.

"If they can't realise the value, they will wait and see if these other factors turn in their favour."

Other shareholders were funds managed by AMP Capital Investors with 35 percent, and clients of Deutsche Bank's REEF Infrastructure with 25 percent.

If the investigations proceeded to a sale, the business -- all assets and the management company -- would be sold as a going concern.

Shareholders were in the process of appointing a financial adviser.

About 70 percent of the harvest is sold to domestic mills for processing into appearance-grade timber suitable for millwork or for structural applications, Rayonier said on its website.

The remaining 30 percent is sold as logs into East Asian markets.