Gunns has undertaken a capital raising in preparation for its buy-out of the timber processing division of ITC.
Gunns offered nearly $33 million worth of shares in the capital raising. An additional 200,000 shares were offered to shareholders yesterday, with the original August offer oversubscribed.
Gunns will leave the forestry management division of the business, ITC Forestry, untouched in the acquisition.
Remaining proceeds from the capital raising will be used to fund other potential acquisitions in the sector or reduce debt, the group said in its announcement to the Australian Securities Exchange.
Gunns announced its intention to buy-out ITC Timber in August. The company said the outlook for its forestry products business remains difficult.
