Gunns shareholders will be watching the price today after the Tasmanian company’s shares closed at a 20-year low.
Gunns shares (opened) at 26.5 cents, after losing 25 per cent of their value yesterday.
There is now speculation Gunns might be a takeover target for companies interested in its forest assets.
According to Gunns’ mid-year financial statement relased in February, the company has a net debt of $660 million and assets worth $2.6 billion.
Shadforths’ financial analyst Matthew Torenius says the company will need the support of the banks.
“They really do need to continue to have very supportive bankers at this stage to continue to operate as they are,” he said.
“They are looking at doing some further asset sales but whether that will be enough to appease the bankers will be hard to tell.”
ACCC inquiry
The Australian Competition and Consumer Commission will review the Woolworths takeover of Gunns’ Tasmanian hardware businesses.
Gunns’ Mitre 10 stores and Becks Home Hardware have been bought by Danks and Son which is a wholly-owned subsidiary of Woolworths.
The Gunns sale includes five hardware stores, a joinery centre and a truss manufacturing plant for $40 million.
