Gunns to sell northern timber assetsPosted August 11, 2011...

Gunns to sell northern timber assets
Posted August 11, 2011 22:07:43

ABC News
The timber company Gunns is putting five of its Tasmanian mill sites up for sale.

The company's commercial real estate agent is seeking expressions of interest in properties at Scottsdale, Deloraine, Somerset and Western Junction.

Financial analyst Matthew Torenius says it is the next step in the restructure of the company, which has moved out of native forests.

"Given the company's debt position, it's a good opportunity to sell these assets off and lower the company's debt," he said.

However, he believes the sales will do little to change Gunns' overall position.

"These sales are really a drop in the ocean for Gunns ... it sort of cleans up their property portfolio a little bit but it's not a game changer.

"It would be only small change in terms of the company's overall debt position."

Gunns requested an indefinite trading halt on Monday while it awaits an announcement on compensation under the state's forest peace deal.