Key Shareholder Supports Rights Issue For Fletcher Challenge Forests
AUCKLAND, 14 November 2000 – Fletcher Challenge Limited today confirmed that Xylem Investments Inc, a US-based
specialist forestry investment fund manager, and the largest shareholder in Fletcher Challenge Forests, has announced
today that it will be taking up in full its rights entitlements to 135.5 million preference shares.
“It is very encouraging to see such a large, long-term shareholder, owning 8% of the Forests Division, agreeing to
support the rights offer and increase their cash investment in Forests” said Michael Andrews, Chief Executive Officer of
Fletcher Challenge Limited. “Xylem clearly recognises the value inherent within Fletcher Challenge Forests, and endorses
both its strategies and the recapitalisation. Their view is consistent with other major shareholders of the Forests
Division,” he said.
The Chairman and Chief Executive of Xylem Investments, Stephen Hurley, said that he saw Fletcher Challenge Forests as a
very important part of Xylem’s investment portfolio. “Fletcher Challenge Forests’ focus on sustainable, renewable
plantation forestry, backed up by proven marketing distribution and manufacturing strategies, provides us with
confidence that this is an excellent long-term investment. Furthermore, it is Xylem’s view that Fletcher Challenge
Forests has, in its New Zealand assets, the ‘crown jewels’ of Radiata plantation forestry,” he said.
The Fletcher Challenge Forests Rights Offer was launched this week, and offers shareholders the right to receive, for
each Fletcher Challenge Forests ordinary share held, two preference shares at a price of 25 cents per share. Trading in
Rights began yesterday, and finishes on December 6. The Rights Offer closes on December 8 – this is the last day on
which holders of Rights can subscribe for preference shares. The fully underwritten Offer will raise $427 million to
recapitalise Fletcher Challenge Forests.
Ends