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Gunns in talks over Great Southern forestry assets
Woodchipper Gunns Ltd said on Thursday that it was in talks with the receivers of failed agricultural projects operator Great Southern to replace Great Southern Managers Australia Ltd as the responsible entity of certain forestry managed investment schemes (MIS).
Debt-laden Great Southern, which operated 45 forestry, horticulture and cattle managed investment schemes on behalf of 43,000 investors, was placed in administration and receivership in May after its cashflow dried up and was unable to draw more support from its bankers.
Meanwhile, Robert Gottliesen has pronounced extensively on this on BusinesSpectator: “Timbercorp’s timber would have been ideal for Gunns, but Gunns must have thought it was the only player and it put in a bid that was full of caveats. It was trumped by US-based Global Forest Partners who also knew the value of the assets.
So Gunns has turned to the second prize, Great Southern, whose timber assets are spread around Australia and so are not as attractive to Gunns.
But at least this time Gunns know they are against a respected rival bidder that knows the timber game.
The banks are demanding a quick solution, so there is no point in making a caveat-laden bid….The wounded gorilla is unlikely to make the same mistakes with Great Southern as it made with Timbercorp.”
Trading Room