Recent Corporate activities

Rubicon Ltd’s one-third holding in ArborGen Inc. will be diluted to about 27% as a result of the U.S.-based tree seedling company’s initial public offering. Summerville, South Carolina-based ArborGen plans to raise between US$82 million and US$92 million by selling 5.1 million shares at US$16 to US$18 apiece, it said in a filing to the U.S. Securities and Exchange Commission.ArborGen describes itself as the world’s leading developer of biotechnology tree seedling products, which it supplies to the forestry industry. It plans to use the proceeds to buy a new headquarters, manufacturing and research laboratories and to repay debt. ArborGen’s other shareholders are International Paper and MeadWestvaco. Rubicon shares have climbed 20% in the past 12 months.

Rayonier have also just reported first quarter net income of US$58 million compared to US$57 million in the comparable prior year period. The 2010 results included a gain of US$12 million from the sale of a portion of the Company’s interest in its New Zealand joint venture. Excluding this gain, first quarter 2010 earnings were US$45 million.

In forest resources, sales of US$48 million were US$1 million above the prior year period, while operating income of US$11 million was $3 million higher than first quarter 2010. Prices for softwood in the Northern region and New Zealand increased significantly throughout the quarter as Asian demand continued to strengthen.