Gunns’ receivers say they have seen “considerable interest” in the failed timber company’s remaining assets, including the Tamar Valley pulp mill, as an expressions of interest process begins. Source: The Australian
KordaMentha announced the EOI process for assets including the pulp mill land and detailed design work, 175,680ha of land and 86,850ha of forest plantations.
“These assets are well positioned to meet growing Asian woodchip and pulp demand,” Bryan Webster, of KordaMentha, said.
“We believe there is significant value in the assets and to date there has been considerable interest.
“We expect to understand the level of genuine interest in continuing the existing seed-to-port plantation woodchip business and/or the development of the pulp mill opportunity once expressions of interest are received.”
Webster said the plantation and landholding assets divestment was one of the largest of its kind in the world.
Industry analysts have been sceptical about the prospects of selling the pulp mill assets, given ongoing community hostility to the project, controversy about it being fast-tracked at state level and doubts about the scale of plantation feed-stock.
However, backers of the mill welcomed the expression of interest process, which is due to close by the end of the year.
Tasmania’s Premier Lara Giddings and the Liberal opposition both expressed support for the project.
Gunns went into administration last year after its bankers, led by ANZ, lost patience with its attempts to secure a backer for the mill.
