21st Dec 2015 14:14
LONDON (Alliance News) - Cambium Global Timberland Ltd, which is undertaking an orderly realisation of its assets following a shareholder vote in 2013, on Monday said it is taking steps to sell what it owns at "appropriate values" while assessing supplier arrangements to cut expenditure where possible.
Cambium Global Timberland said its net asset value was 18.0 pence on October 31 against 23.00p on April 30. It booked a total loss of GBP1.2 million in the six months ended October 31, versus GBP6.4 million the corresponding half the prior year.
"In Brazil the iron-smelting industry continues to be depressed, with the level of demand for wood that does exist in our regions of operation coming from the pulp industry. The available market is restricted due to the fact that major pulp mills tend to own or otherwise control their own supplies," Chairman Antony Gardner-Hillman said.
However, the chairman said talks recently began with a prospective buyer of its asset in Tocantins.
"Negotiations are ongoing and no deal has yet been agreed. The asset ownership continues to be complicated by the outstanding lien on the property and by legal proceedings commenced in May 2015 (which the company is challenging) alleging infringement of a third party's plant breeder's rights. These complications have added to the company's costs burden but the board is confident they do not prevent the realisation of value and that the board will find an appropriate way through," Gardner-Hillman said.
The chairman said the company has had an offer to buy its assets in relation to Hawaii the company.
"At this stage the company continues to consider the options of not renewing its lease (the current term will expire on December 31) of the Pahala Estate where the wood suffered catastrophic storm damage in January 2015 and of selling its Pinnacle asset only. There can be no certainty as to the offeror's time-scale and appetite but the board is hopeful it will be able to announce a deal early in 2016," he said.
Shares in Cambium Global Timberland were down 7.7% at 6.00 pence on Monday.
By Samuel Agini; [email protected]; @samuelagini
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