News | Business
28 Mar 2017 3:31
NZCity News
NZCity CalculatorReturn to NZCity

  • Start Page
  • Personalise
  • News
  • Sport
  • Weather
  • Olympic Games
  • Shopping
  • Jobs
  • Horoscopes
  • Lotto Results
  • Photo Gallery
  • Site Gallery
  • TVNow
  • Dating
  • SearchNZ
  • NZSearch
  • Crime.co.nz
  • RugbyLeague
  • Make Home
  • About NZCity
  • Contact NZCity
  • Your Privacy
  • Advertising
  • Login
  • Join for Free

  •   Home > News > Business

    Tenon shareholders back sale of Taupo mill

    Tenon shareholders have backed plans to sell the firm's Taupo wood processing mill to a consortium of US and New Zealand investors and wind up the business.

    20 March 2017

    Tenon shareholders have overwhelmingly backed plans to sell the firm's Taupo wood processing mill to a consortium of US and New Zealand investors and wind up the business.

    At a special meeting in Auckland on Monday, investors were almost unanimous in their support of measures to sell the Clearwood mill in Taupo to interests led by Tenon's controlling shareholder Rubicon for US$55 million (NZ$78m).

    That would then see two capital returns expected to generate $2.12 per share for investors, followed by a de-listing from the NZX and ultimate liquidation of the business.

    "If shareholders approve the resolutions put to the meeting today, there can be no doubt that the strategic review will have delivered considerable value to our shareholders," director Mark Eglinton said in speech notes published to the stock exchange.

    "More than US$125m (including dividends) will have been returned to shareholders, which will equate to a total shareholder return in US dollars of approximately 50 per cent since we started the strategic review process in 2015."

    Last November, shareholders approved the US$100m sale of the US operations to New York-based buyout firm Blue Wolf Capital, allowing the company to make a US$71m capital return via a share cancellation. The Rubicon-led purchase of the Clearwood mill in Taupo trumped seven other competing offers.

    Rubicon owns about 60 per cent of Tenon and wasn't allowed to vote on a component of the transaction to approve the related party transaction, nor the de-listing resolution.

    Tenon started turning a profit in 2014 after more than a decade of losses as the US home-building sector began to recover, supporting demand for its wood mouldings which it largely sold into the world's biggest economy via Home Depot outlets.

    The shares last traded at $2.05 and have gained 7.5 per cent over the past 12 months.

    © 2017 NZN, NZCity


     Other Business News
     27 Mar: NZ shares fall on Trump healthcare failure
     27 Mar: Record Adele crowds use public transport
     27 Mar: Electricity firm extends run of losses
     27 Mar: GeoOp sounds out interest for ASX listing
     27 Mar: Kiwi steady after Trump's Obamacare defeat
     27 Mar: Houses needed on Wellington fringes: Mayor
     25 Mar: Chinese dairy giant expands NZ plant
     Top Stories

    RUGBY RUGBY
    Smith speaks of airport tryst regrets More...


    BUSINESS BUSINESS
    NZ shares fall on Trump healthcare failure More...



     Today's News

    International:
    London attack: Women gather on Westminster Bridge in silence to remember victims 22:07

    Rugby League:
    Friend all smiles for NRL Roosters again 21:57

    Entertainment:
    Caroline Flack is plotting her own music career 21:42

    Law and Order:
    Ute a police focus in Dunedin sex assaults 21:17

    Entertainment:
    Kendall Jenner "fully flipped" out when she came face to face with her alleged stalker 21:12

    Christchurch:
    US tramper found near Rakaia River 20:57

    Entertainment:
    Marc Anthony says Jennifer Lopez is his "girl for life" 20:42

    Entertainment:
    James Corden is "very very humbled" by the success of 'The Late Late Show with James Corden' 20:12

    Entertainment:
    Katie Price and Kieran Hayler are returning to the Maldives for the "honeymoon of her dreams" 19:42

    Cricket:
    Williamson bags Test record, NZ ahead 19:17


     News Search






    Power Search


    © 2017 New Zealand City Ltd