TRANSACTION November 2018
Phaunos Timber Fund Divests Forestlands
At its AGM in June 2017 the shareholders of Phaunos Timber Fund voted to wind up the fund. The Board of Phaunos then announced its intention to commence a process for the orderly realisation of the Company’s assets.
- In November 2017 Pöyry Capital was appointed by Phaunos to act as its exclusive financial adviser in connection with the sale of the Company’s forestland interests in New Zealand, Brazil, and Uruguay. At the time of our appointment the share price of Phaunos was US$0.42.
- A sale process for the assets was launched in April 2018 and indicative offers were received at the end of June.
- On July 3rd Stafford Capital Partners announced a bid to acquire the shares of Phaunos at a price of US$0.49 per share.
- On September 14th raised its offer to US$0.52 per share. On September 28th Stafford announced that its offer was unconditional as to acceptances. The offer became wholly unconditional on October 18th and Stafford’s acquisition was completed in early November.
- From the time of our appointment to completion, shareholders in Phaunos realised a 24% increase in the value of their investment.
- Before launching the sale process Pöyry Capital carried out extensive pre-marketing to forestland investors across six continents. It was made clear by us to these investors that Phaunos had an open mind as to the way that the objectives of the shareholders might be realised – whether through a sale of the assets in whole or part or by way of a sale of the company.
- Comprehensive pre-sale legal and commercial due diligence was commissioned by Pöyry Capital, notably including a new appraisal of Matariki Forestry Group in New Zealand. Extensive sale materials were prepared.
- Over 130 investors were contacted during the sale process and offers were received from well capitalised and experienced forestland investment institutions before the shareholders decided to accept Stafford’s offer.