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Business

Gunns takes a stake in Forest Enterprises

by Staff Writer

Jul 3, 2009

Gunns has acquired a 17.9 per cent interest in the equity of Forest Enterprises Australia (FEA) Limited at a value of 10 cents per share.

date

Gunns will fund the purchase with the placement of 5.7 million Gunns Limited shares and a cash payment of $1.58 million to the vendors.

"The investment by Gunns recognises the strategic importance to the forest industry of further consolidation," the company said in a statement to the ASX.

Based in Lismore and Launceston, FEA operates hardwood and softwood sawmills at Bell Bay in Tasmania.

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