Sino-Forest Corporation, China’s largest foreign-owned forestry company, said in a statement to the Toronto Stock Exchange that various parties had approached it including Macquarie and CVC Asia “with respect to the possible investment in, or acquisition of Sino-Forest”.
The offer, if finalised, will be structured to cash in on surging demand for wood-based materials in China’s booming economy.
Analysts said buying Sino-Forest would give the bidders access to 356,000ha of timber plantations in the world’s fastest-growing paper market.
The Chinese government started allowing overseas investment in forestry five years ago and now has no restrictions on overseas shareholdings in timber developments.
