Gunns to complete Auspine takeover

Timber products maker Gunns has launched a bid to buy the remaining 39 per cent of Auspine it does not already own, according to an AAP report online.

The offer is for A$7 per share, representing a 13.8% premium to its previous cash bid for the firm.

Auspine managing director Adrian de Bruin, who controls 30.3% of the company’s issued shares, said he intended to accept the unconditional offer.

The payment would be within one month after Auspine shareholders accepted the offer and no later than 21 days after the end of the end of the offer period, the report said.

“The acquisition will establish Gunns as Australia’s largest privately held diversified owner and manager of hardwood and softwood forest resources,” Gunns Chief Executive John Gay said.

“Not only does it deliver complete control of a valuable plantation resource, it provides a significant beachhead in the mainland market and in a range of softwood structural timber product and fibre offerings to add to our very strong position in hardwood products.

“Auspine is already performing above our original expectations and we have a lot of confidence in it.”

Gunns said it expected the proposal to result in a range of strategic and financial benefits.

These included geographic diversification, softwood and hardwood fibre and sawn timber synergies, improved ability to invest in veneers and engineered wood products, distribution efficiencies and attractive positioning for further expansion, AAP reported.

Auspine shareholders would receive Gunns’ formal offer through a bidder’s statement, which was soon to be dispatched to shareholders.

The offer was due to close at 7pm on January 18, 2008.

The Auspine Target’s Statement and Independent Expert’s Report was expected to be sent to shareholders in December 2007.

At 11.51am, Auspine shares were up 16 cents or 2.95 per cent to $5.59, while Gunns’ shares were in a trading halt.