Pulp friction? No, Gunns is upbeat

Pulp friction? No, Gunns is upbeat

Agribusiness
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GUNNS boss Greg L'Estrange and adviser Moelis & Co have been talking up the successful development of its Bell Bay pulp mill project to half a dozen possible cornerstone investors in the United States and Asia.

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GUNNS boss Greg L'Estrange and adviser Moelis & Co have been talking up the successful development of its Bell Bay pulp mill project to half a dozen possible cornerstone investors in the United States and Asia.

A draft prospectus is being finalised while potential investors conduct due diligence, The Australian Financial Review reports.

Some good news for the battered timber company, which the doomsayers still reckon could collapse, is that its biggest shareholders, accounting for roughly 40 per cent of the register, are backing its $400 million equity raising.

The other positive is that after a long gestation of nine months, Gunns is this week poised to offload its Heyfield native forest sawmill in Victoria to timber wholesaler Mortim Australia for $25 million to $30 million.

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