Forestry fund abandons London for ASX
A Queensland forestry agribusiness fund manager is looking at a possible Australian Stock Exchange (ASX) listing while it plans an exit strategy for its investors.
Queensland Paulownia Forests (QPF) executive chairman David Gold confirmed the agribusiness manager was looking at an ASX listing after abandoning a London Stock Exchange Alternative Investment Market listing.
“If we decide to list it will be on the main [Australian] exchange rather than a secondary board,” he said.
“We currently have our convertible notes listed on the Bendigo exchange, but we will list the main shares there.”
Gold said the company abandoned the London listing due to costs and the involvement of directors in maintaining investor awareness on the other side of the world.
The manager has appointed Hindal Securities and McMahon Clarke Legal to weigh up all the options for an exit strategy, which will include a private trade sale or a joint venture with another agribusiness manager.
“The process has started and we will look to maximise shareholder value with whatever action we decide to undertake,” Gold said.
“I am hoping we can make a decision of which strategy by the first quarter of the New Year.”
The company has not ruled out a part sale of the business if the right deal can be struck.
“The board will consider these and recommend them to shareholders if they are considered to be in the best interests of all stakeholders,” he said.
“There is no assurance that any such offers or a listing will result.”
Shares in QPF were first offered at the end of 2001 and there are 470 shareholders in the company.
In addition, there are about 3,500 growers in 12 managed investment schemes of which about a third are shareholders.
Gold says the interests of the grower will be considered in future directions for the company.
“The possible sale or listing of the company doesn’t affect the managed investment scheme investors,” Gold said. “But we will ensure any moves are in their best interests.”
Currently QPF has more than $80 million of funds under management and is responsible for more than 3,500 hectares of Paulownia plantations in New South Wales and southern Queensland.
Gold said the company has grown dramatically since it offered shares to the public.
“When we offered share capital in 2001 the company’s capitalisation was about $500,000, but now it is up to $16 million,” he said.
QPF will be launching three Paulownia woodlot managed investment schemes for this financial year. Gold says the schemes are ready to launch but are awaiting product rulings from the AustralianTaxationOffice.
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