CatchMark Timber Trust Inc has said it approached Phaunos Timber Fund Ltd with a possible all-stock offer that values the closed-ended investment company at US57 cents a share. Source: Reuters
Shareholders in Phaunos, which has forestry investments in New Zealand, Uruguay and Brazil, last year voted for an orderly wind down of the fund that maximised value while making timely returns to shareholders.
Last month, the fund’s board urged shareholders to reject an offer from a Stafford Capital Partners subsidiary to buy the company for US$244.2 million.
The offer from US-based CatchMark values the fund at US$284 million according to Thomson Reuters calculations.
CatchMark said it would give the combined company an equity value of US$850 million and an enterprise value of US$1.3 billion at current stock prices.
Phaunos said in a statement earlier that its board would meet with CatchMark to discuss a possible acquisition offer, which it said represented a “significant premium” compared with Stafford’s proposal. There was no certainty that an offer would materialise, Phaunos added.
Stafford said it was extending its own offer for Phaunos until 13 September.
