Tasmania’s Gunns in trading halt after Chandler walks away   9 Mar 2012

Article - BusinessDesk

Tasmania’s Gunns in trading halt after Chandler walks away from deal

By Paul McBeth

March 9 (BusinessDesk) – Gunns, the ASX-listed forest plantation owner, is in a trading halt as it looks for new capital after New Zealand-born billionaire Richard Chandler backed out of a cornerstone role in a A$280 million deal.

The Tasmanian-based company requested a two-day halt after it was “advised that the Richard Chandler Corporation does not intend to proceed with its participation in the proposed capital equity raising” outlined last month, it said in a statement to the ASX.

“The company is in discussions with equity investors in respect of the raising” and it will announce more information about the recapitalisation at the end of the discussions, it said.

Gunns shares last traded at 16 Australian cents apiece, valuing the company at A$140 million.

Chandler’s investment vehicle has been doing due diligence on Gunns for the last month, as it weighed up taking an A$150 million stake in the company as part of a rights issue. He was ranked at 230 on Forbes global list of billionaires with a net worth of US$4.6 billion

That evaluation included whether social value is created, such as establishing jobs and improving sustainable environmental practices, attracting local support, imposing strong corporate governance, making appropriate financial returns and setting up conservative debt levels, Chandler said last month.

Chandler co-founded Sovereign Global Investment with his brother Christopher in 1986, primarily investing in emerging markets. In 2006, Sovereign demerged, and Richard Chandler established Orient Global, which is now known as RCC, according to the company’s website.

That vehicle is split into two arms, the Creative World Group which is a social investment group focusing on education and healthcare, and the Capital group which invests in a wide range of industries.

(BusinessDesk)

Add a comment

Bookmark and Share

News

Dramatic photos: Fox Glacier's retreat causes valley to rise by a metre

23 Jan 2015 Environment
A series of photographs taken over 10 years has revealed the dramatic changes to one of New Zealand's most famous glaciers. The Massey... more

Airport Extension Threatens Wellington Waves

23 Jan 2015 Environment
This press release clarifies statements in our press release of January 8th regarding swell focusing The Wellington Boardriders ... more

Business

MARKET CLOSE: NZX 50 rises to a record; MRP, Meridian gain

23 Jan 2015 Business News
By Suze Metherell Jan. 23 (BusinessDesk) - New Zealand shares rose in a global rally, paced by Genesis Energy, Meridian Energy and ... more

NZ govt operating deficit smaller than expected

23 Jan 2015 Business News
By Paul McBeth Jan. 23 (BusinessDesk) - The New Zealand's government's operating deficit was smaller than expected in the first five... more

Living

Japanese film season opens with Bread of Happiness

23 Jan 2015 Lifestyle
As summer holidays give way to normal daily work and school routines, the monthly Japanese film screenings return to Massey... more

Registrations Open for Disability Surf Day at Sumner Beach

23 Jan 2015 Lifestyle
Registrations are now open for a surf day at Sumner Beach, Christchurch onSunday 22 February for physically disabled people hosted... more

Property

Housing warning: It's an Ireland repeat

23 Jan 2015 Property
NZ expert sees factors behind Irish house crash happening here. Precisely the same factors that plunged Ireland into its housing... more

A building block for your future

21 Jan 2015 Property
A rare big block of Bay of Plenty development land in Ohauti, about 10 minutes' drive south of the Tauranga CBD, is to be auctioned... more

Migration

Free new Kiwi workshops return for fresh season

23 Jan 2015 Migration
Newcomer settlement support agency Auckland Regional Migrant Services (ARMS) is kick-starting the New Year with the return of its ... more

Overstayer numbers at record low

22 Dec 2014 Migration
Immigration Minister Michael Woodhouse welcomes new figures showing New Zealand overstayer numbers are at the lowest since 2000. A... more

Travel

Fifteen New Zealand spots to visit in 2015

23 Jan 2015 NZ Tourism
Need some inspiration for the year ahead? Here are some brilliant things to do around the country. 1. Crankworx The world's... more

Holiday parks making most of sunshine

22 Jan 2015 NZ Tourism
Holiday parks are reaping the benefits of the great holiday weather, starting the new year with record-equalling confidence... more

Sport

Sean Maitland set to join London Irish

23 Jan 2015 Rugby
A COMBINATION of financial and positional considerations are understood to have been behind Sean Maitland’s decision to opt for... more

Veteran Racer Kenny Smith Rolls Back Years, Odd On For Title

23 Jan 2015 Motor Sport
When it comes to fast single seater racing cars, you might think of Lewis Hamilton, Sebastian Vettel or Scott Dixon in the USA. You... more

Columns

Gordon Campbell on Saudi Arabia and Islamic State

23 Jan 2015 Column
So the US has been holding talks in London this week with its 21 coalition allies, on how best to co-ordinate the military response... more

Gordon Campbell on the Greek election, and EU turmoil

22 Jan 2015 Column
Column - Gordon Campbell   Gordon Campbell on the election in Greece, and EU turmoil The election in Greece on Sunday –... more

Kiwi Success

New Zealand scientist receives top award in China

16 Jan 2015 People
Science and Innovation Minister Steven Joyce has welcomed the news that Kiwi scientist Dr Phil Rolston has been awarded the Chinese ... more

Graham Shaw, Peter Huljich join Pushpay board

13 Jan 2015 Appointments
By Suze Metherell Jan. 13 (BusinessDesk) - Graham Shaw and Peter Huljich have joined Pushpay Holdings' board as part of the... more

Recruitment

Tainui's Mike Pohio resigns

23 Jan 2015 Recruitment
By Fiona Rotherham Jan. 23 (BusinessDesk) - Mike Pohio, chief executive of Tainui Group Holdings, has resigned after eight years at... more

Manufacturing activity rises to decade high in December

22 Jan 2015 Recruitment
By Suze Metherell Jan. 22 (BusinessDesk) - Activity in New Zealand's manufacturing sector rose last month to its highest level in a... more