York Timber sells plantation to Sappi at a premium
The funds raised will provide York with additional capital to fund purchases of land adjacent to its current plantation areas
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.
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