South East Asia Wood Industries Holdings Ltd is to buy shares valued at US$200m in New Zealand’s Fletcher Challenge Forests Ltd, making it the company’s single largest share holder.
The Hong Kong-based company is proposing to subscribe to 1.108 billion new and existing shares, giving it a 35% stake in the company. Fletcher’s wholly-owned subsidiary, Kaingaroa Timber Co Ltd, will use the money to help finance the purchase of the Central North Island Forest Partnership’s assets.
