Sino-Forest Corporation
Sino-Forest Corporation is a leading commercial forest plantation operator in China. Its principal businesses include the ownership and management of forest plantation trees, the sale of standing timber and wood logs, and the complementary manufacturing of downstream engineered-wood products.
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Sino-Forest ups holding in Omnicorp to majority stake
Sino-Forest Corp (TSX:TRE), a commercial forest plantation operator in China, said it is taking its holding in Hong-Kong-listed holding Omnicorp Ltd to a majority stake via subscribing to 230 million Omnicorp shares priced at HK$1.82 each.
It will be paying HK$418.6 million or approximately US$53.7 million to take its voting interest in Omnicorp to 53.7 percent of the enlarged share capital from the current 19.9 percent stake.
Sino-Forest also holds HK$212.3 million of existing convertible bonds of Omnicorp that were acquired in November 2007 and February 2009. Assuming full conversion of the convertible bonds and the completion of the subscribtion agreement, Sino-Forest will own approximately 60.1 percent of the enlarged issued share capital of Omnicorp.
Omnicorp has a 60.4 percent ownership in Greenheart Resources Holdings Ltd ("Greenheart"), and Sino-Forest, through its wholly owned subsidiary Sino-Capital Global Inc., owns a 39.6 percent minority stake. As one of the largest forest concession owners and operators in Suriname, South America, Greenheart owns a 178,000-hectare hardwood concession with a harvestable standing stock volume of approximately 4.4 million cubic meters.
Sino-Forest chairman & CEO Allen Chan said, "We are pleased to expand our existing partnership with Omnicorp and look forward to sharing our operating expertise and R&D knowledge in sustainable forestry management with Greenheart. This collaboration will strengthen our supply of sustainable hardwood fibre at competitive prices to serve the increasing wood deficit in China and in turn deliver stronger shareholder value for Sino-Forest. At the same time, through low impact sustainable harvesting and continued adoption of CELOS best practices, we will endeavor to preserve and enhance Suriname's precious ecosystem."
Other Sino-Forest Corporation news
- Sino-Forest shares surge 40% after US-based fund takes 11.5% stake
2011-07-04 - Sino-Forest responds to Globe and Mail article, calling it "incorrect"
2011-06-20 - Sino-Forest grows fourth quarter profit by 52%
2011-03-16 - Sino-Forest acquires engineered wood production and research business in China
2010-01-12 - Toronto listed China forestry play set to benefit from Jiangxi deals
2009-06-19
