Fletcher Challenge Forests Ltd’s decision to reduce the value of its forests left the company NZ$26m in the red during the six months ended December 31.
Fletcher, which recorded NZ$4m in profits a year ago, marked down its forests by NZ$38m to match the NZ$725m price it is selling them for to two US funds. The company intends to concentrate on the more profitable sawmilling side of its business.
The Kiwi Forests Group Ltd, which comprises a group of New Zealand investors, the Ontario Teachers’ Pension Plan and Prudential Timber Investments, is buying the forests.
