Buyers in 15 Indian Sandalwood managed investment schemes (MISs) being run by Elders Forestry have opted for an immediate sale to an overseas buyer over a competing bid from a locally-based listed investment company.
Earlier this month, Hamilton announced plans to present an alternative option to growers that would involve them receiving shares in Hamilton, with an option for some to nominate for the Hamilton board.
At the time, Hamilton director Giles Craig told InvestorDaily the $70 million offer vastly underrepresented the true value of the assets.
Elders responded by advising growers to ignore the Hamilton approach, which it said was incomplete and held no prospect of any short-term income for growers.
Following the outcome of Thursday's grower vote in favour of the Santanol sale, announced by Elders to the Australian Securities Exchange (ASX) on Friday, Mr Craig maintained the result was not a good one for growers.
However, he conceded the appeal of 'a bird in the hand', and said it may have been difficult for advisers of the growers to counsel against the immediate sale to Santanol.
Growers in 14 of the 15 schemes voted for the Santanol sale. The vote in the remaining scheme was adjourned and will resume on March 26, according to the ASX statement.
The successful vote from 14 of the schemes satisfies the remaining condition precedent in the sale agreement with Santanol, Elders stated.
