York Timber Holdings has sold a eucalyptus plantation at a 38% premium on its value, despite uncertainty about the government’s land expropriation plans. York said it had sold a commercial forestry asset to Sappi for R54m in cash. The net asset value of the plantation was R39.2m, according to York’s most recent financial statements, which showed that the asset contributed a small loss in the six months ended December. In August 2018, Mondi Group CEO Peter Oswald said the packaging and paper company was unfazed by moves towards land expropriation without compensation, since the group's business model prioritised access to wood resources instead of land ownership.

PODCAST: Behind the class action lawsuits against Tiger Brands

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.

Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now