JAKE MITCHELLA joint offer between private equity heavyweight...

JAKE MITCHELL
A joint offer between private equity heavyweight KKR and sandalwood producer Santanol for Elders’ forestry assets has been all but approved by growers, putting to bed a counter offer from distressed debt firm Hamilton Securities.

KKR’s involvement in the bid was foreshadowed in the Street Talk column. It was confirmed by the company on Thursday.

Santanol is an existing owner and manager of sandalwood plantations in Australia, but it is believed KKR will stump up the majority of the $70 million for the trees in 15 Elders managed investment schemes.

In unaudited voting, 14 of the 15 schemes had supported the deal, with growers in one small scheme failing to attend in sufficient numbers to come to agreement.

This vote was adjourned until March 26.

“I’m happy on behalf of the growers,” said Elders managing director Malcolm Jackman. “Would anybody be totally happy with the outcome – probably not.

“At the end of the day for everybody it is a very sensible commercial outcome.”