NZFP urges caution

Press, 19 December 1986, Page 22

NZFP urges caution

NZ Forest Products, Ltd, has cautioned shareholders that their interests could be seriously jeopardised if they accepted the Fletcher Challenge, Ltd, offer on the basis of the statement by FCL that an improved offer will be made for shares as soon as it receives the consent of the Commerce Commission. The managing director of NZFP, Mr Warren Hunt, said that NZ Forest Products shareholders were now confronted with an offer which may not proceed, at a price which has not been disclosed. “Acceptance of the current Fletcher Challenge offer at this stage could take shareholders out of the play for some months,” he said. “We expect that several months could pass before we know whether Fletcher Challenge can proceed with their offer. Accepting the Fletcher Challenge offer, without knowing whether they can proceed with it, and without knowing what the final offer price will be can only leave the individual shareholder in the worst possible position of not being able to deal with his shares.” NZ Forest Products has meanwhile reported improved prices for export sales negotiated for the first quarter of 1987. Mr Hunt said international demand for NZ Forest Products’ pulp and paper products was strengthening. “First quarter pulp prices have been negotiated at levels 20 to 25 per cent higher than those prevailing in September this year,” he said.

“Lineboard and Sackcraft exports are also in strong demand and as consequence, the selling prices for these products has increased.” Mr Hunt also reported that the depressed Japanese log and timber business was showing signs of improvement, with increased prices for the first quarter.