China Forestry Group buys RMS FGI NZ
Wednesday 1 Apr 2020CFPC Singapore is pleased to announce that it has just finalised the full company acquisition of RMS FGI New Zealand. Overseas Investment Office approval was received for this transaction in early March 2020. As part of the ownership transition, the company has been renamed Remutaka Forests Ltd.
The purchase includes 5,235 hectares of mixed age pine plantations on land leased from Greater Wellington Regional Council. These estates will be operated by CFGC Forest Managers. CFGC Forest Managers is a leading forest products and management company, with 30,000 hectares of forest land under management across the NZ North Island. The company is both an important regional supplier of logs to domestic sawmills and operates a major export trading business.
Initial engagement has been undertaken with key stakeholders, including Regional council, contractors and key domestic customers. The company will continue under a ‘business as usual’ framework, with all previous arrangements for community access and public use maintained.
CFG Chief Operating Officer, Mr Steve Walker, has said “our team are extremely pleased to be associated with this estate, the community, local sawmills and contractors. This transaction provides certainty to our business and our existing clients in the Wellington region. We now look forward to bringing further investment that can enhance the economic and social contribution these forests make to our communities”.
This purchase was supported by a number of parties including Buddle Findlay in Wellington, New Zealand who acted as legal adviser, Deloitte in Auckland, New Zealand for Taxation and other financial advice, and FORME group who provided forest valuation and modelling services, in association with Apical Solutions of Geelong, Australia.
CFPC Singapore is a subsidiary of China National Forest Products Company Ltd (CFPC). Founded in July 1979, the company is a state-owned enterprise directly under the Ministry of Forestry. In 1998, it was delinked from the State Forestry Administration and merged into China Forestry Group Co., Ltd. In the 40 years since its establishment, the company has actively carried out trade in forest products and played a leading role in Chinas’ national forestry industry.
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