Greenheart’s Danny Wu
Greenheart Group has signed a conditional deal to buy Northland Forest Managers (1995) for $1.5 million. Source: NBR
The Hong Kong-listed owner of Northland’s Mangakahia forestry estate is expanding its New Zealand interests.
Greenheart Group says it entered into a conditional agreement to buy all of the shares in Kerikeri-based Northland Forest Managers, which oversees 19,000 hectares of plantation forest throughout Northland.
The forest manager counts Greenheart as its biggest client.
“The forest management service company is a well-established business with the prerequisite know-how, experience and professionalism in plantation operation,” Greenheart says.
The company says the acquisition will increase the group’s presence in New Zealand and expects the experienced forest management team will assist with the possible expansion of the group’s plantation business in New Zealand and to other regions in the future.
Earlier Greenheart told the Hong Kong exchange it was in talks about a potential acquisition, to explain a 24% spike in its share price. The shares last traded at 64HKc.
The deal is expected to be completed five days after the conditions are met or February 1, whichever is later.
Northland Forest Managers is co-owned by managing director Nick Kingsford and business manager Liz Kingsford.
In September, Greenheart said its New Zealand business experienced a sharp decline when prices for radiata pine fell to $US23.30 per cubic metre from $US33.70/m3 in the six months ended June 30, 2015.
Greenheart’s New Zealand business accounted for about 89% of Greenheart’s $HK297 million of first-half revenue.
The company says it will reduce its local harvest based on market conditions through the second half of the year.
