ITC and Yates merger imminent
Forrestry investment company ITC has confirmed it is negotiating a merger with Yates Ltd and expects to make an announcement shortly to advisers and investors.
ITC managing director Tony Jack said in a statement to "all advisers that should a merger occur you are unlikely to see any major difference in your dealings with ITC".
"It is fully acknowledged by Yates," he continued, "that ITC's forestry expertise and experience is one of the major attractions to Yates in pursuing the transaction."
Jack said that Yates's forestry operations are about half the size of ITC's, and the main advantage to ITC investors will be that they will be able to invest in a "listed management company once the merger is complete".
This recent announcement follows a similar announcement made to the ASX last Friday from Yates, which was requested by the ASX after reports about the merger talks were published in the finance media the same day.
Yates managing director Ken Richards said today that an announcement about the merger should be made "very soon", perhaps by tomorrow. However, Richards said that legally the merger is a takeover, with Yates as the buyer and ITC merging with Yates's forestry operations.
"Legally it's a takeover, but really it is a merger of two forestry businesses with the same philosophies," he said.
"Both believe in good forestry, both have products at the best end of the scale of retail financial products, and both subscribe to the view that to get quantum forestry assets merged is paramount."
Tony Jack confirmed today that an announcement is imminent; it is only "technical issues needing to be resolved" that now stand in the way of a completed merger.
The Yates group was originally bought by West Australian accounting group specialising in agribusiness Norgard Clohessy Equity, with the total operations now going by the current handle of Yates Limited.
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