This popped up on ABC...

This popped up on ABC online:

http://www.abc.net.au/news/2012-02-22/company-behind-gunns27-deal-breaks-silence/3844384?section=tas


The company considering buying a 40 per cent stake in Tasmanian timber company Gunns has broken its silence on the proposed deal.

Gunns told the stock exchange earlier this month it had reached a proposed $150 million deal with the Richard Chandler Corporation.

In return, the Singapore-based company will receive a 40 per cent stake in Gunns which will be able to clear its debt by the end of the year.

Nearly two weeks after the announcement, the Richard Chandler Corporation has made its first public statement.

It says it will complete its due diligence on the proposed deal by next month and is looking to create employment and a sustainable industry through the investment.

The statement does not directly refer to the Bell Bay pulp mill, but says the company hopes to obtain a social licence and community support.

Financial analyst Chris Elliott says the company will be thorough in its assessment of Gunns.

"They're not just going to walk into the office of Gunns and just have a quick glance over their books."

"As the company has said in this statement today that it's not just at the company's balance sheets, or anything along those lines but it's also in line with making sure that it is in line with their investment philosophies as well."

Tasmania's Deputy Premier Bryan Green met the company in Singapore yesterday.

He described the meeting as interesting but says the details are private.

Mr Green and Opposition Leader Will Hodgman set off on Monday on a tour of south-east Asia, China and Japan, aimed at reassuring customers about the stability of Tasmania's forest exports.

Mr Green says it is not the case that all Asian forestry customers are refusing the state's woodchips because they have been sourced from native forests.

Speaking from Tokyo, Mr Green told ABC Local Radio native forest harvesting was only an issue for some buyers.

"Into Japan it has been, to a degree, and that is why we're addressing the pulp paper manufacturers today but into China, not so much."

"I think that the issue has been for Tasmania when it comes to mainland woodchips is that in the majority, they are plantation woodchips and they're being sold below what we can produce native forest."



DYOR mine is faulty often

CR.