Highland Timber has agreed to sell its forest assets to FIM Timber Growth Fund IV for £12.5m, following consultation with a number of interested parties.
The conditional agreement will see FIM take control of Highland Timber’s forests in Scotland and Wales, leaving the Exeter-based forestry company with no trading activities and focused on investment opportunities.
“The difficulty in placing a precise value on the forests during the sale process is clear,” said chairman Ron Williams.
“However, all the offers received during the period under review exceeded the original costs of the individual forests, less their accumulated depreciation.”
Highland Timber chief executive Oliver Waring added: “The sale of the company’s forests assets to FIM is the final step for the company in realising the value of its assets.”
FIM has already had a £9.9m offer for Highland Timber rejected by shareholders after Louis Dreyfus Energy Holdings (LDEH) Ltd offered £11.1m for the firm, although LDEH has yet to show any intent to increase its offer after the improved bid by FIM, according to Highland Timber.
