Integrated forestry company Gunns has announced a $145 million equity raising to fund the purchase of ITC Timber and the possible acquisition of assets managed by Timbercorp and Great Southern Plantations.
The Tasmania-based company will acquire ITC Timber from Elders for an enterprise value of $100 million.
Gunns said it is actively working on proposals to play a role in the ongoing operation of assets presently managed by Timbercorp and Great Southern Plantations.
"Significant opportunities for expansion of the group's interests in the Australian forestry sector are arising, primarily through the restructure of the MIS (managed investment schemes) sector," Gunns chairman John Gay said.
"Gunns is well positioned to capitalise on opportunities that may become available and is assessing several opportunities to diversify and expand its forestry operations."
Gunns has also reported a net profit for the 2009 financial year of $56.2 million, a decline of 4.9 per cent on the previous year.
The result was adversely impacted by a significant reduction in plantation MIS performance, the company said.
Gunns' net debt stood at $654.3 million as at 30 June 2009, compared with nearly $1.048.9 billion at the same time last year.
The company's gearing level was around 33 per cent as at 30 June 2009 and there are no refinancing commitments required on senior debt facilities until 2012.
Administrators were appointed to Great Southern and Timbercorp in May and April, respectively.
