NZFP merger ‘not discounted’

Press, 13 December 1986, Page 31

NZFP merger ‘not discounted’

By NZPA business reporter Jamie Gray Wellington NZ Forest Products. Ltd, came close to merging with Amcor, of Australia, three years ago and the possibility of one taking place in future has not been discounted, according to NZFP’s managing director, Mr Warren Hunt. “I believe the dialogue will be continuing,” Mr Hunt said at a press briefing. “The point at which there

The managing director of Tasman Forestry, Ltd, Mr Lin Stoddart, has been elected the president of the N.Z. Forest Owners’ Association. He replaces Mr Brian Wall, the chief executive of Baigent Forest Industries, Ltd, who has been chairman of the association for five years.

will- be a culmination or marriage ... I would not like to predict,” Mr Hunt said. NZFP has had an association with the Australian counterpart for 20 years, a relationship that progressed to cross directorships, and latterly, a cross-shareholding arrangement. They have an Australiabased joint venture company called Amfor Pty, Ltd, which was formed to pool resources in some areas. The two had looked at putting the companies together, first because they shared similar operations. Second, there were certain grades of paper that could be made more efficiently if Amcor were to concentrate on fine printed papers and if NZFP rationalised and moved out of this specialised field. And the third was centred on the fact that by 1996, New Zealand and NZFP will be faced with a large increase in the availability of softwood. Obstacles to the merger (and the two had considered it on other occasions) had been the different legislation, differing tax laws, and feelings of patriotism and nationalism in each country. “So these are some of the obstacles, but I don’t say that any of those are insuperable.” Asked whether there had been other “suitors”, Mr Hunt said there had been many parties interested in “getting a piece of the action” which had been evident in the number of positions taken in the stock. NZFP, at present the subject of a proposed take-over bid by Fletcher Challenge, has recommended its rejec-. tion on the grounds that FCL is not offering enough (360 c a share or a share swap alternative).