Dec 30, 2010 08:00
On Friday 30th 3 of December 2010, The Forest Company ("The Company") acquired the shares of Colombia's sixth largest plantations company, Reforestadora El Guasimo, located in the Antioquia region of Colombia. The company has a total landholding of 8,036 hectares in Colombia including 4,912 hectares of standing pine plantations.
"This acquisition broadens the Forest Company's geographical reach and portfolio diversification, and is an attractive way to enter the Colombia market", says Harald Orneberg, CEO of Timber Capital Limited, the investment manager to The Forest Company.
The acquisition of the 100% of the shares of Reforestadora El Guasimo is a joint venture with Blackeye Finance LLC, that has made a 10% investment in the Project. The Forest Company has a sustainable harvesting plan for the pine plantations and will be replanting harvested areas to ensure a steady long-term supply of high quality wood fibre from the plantations. Reforestadora El Guasimo is in the process of obtaining FSC certification and The Forest Company will continue to manage the plantations according to the current high environmental and social standards.
The Forest Company is pleased to enter into a long term co-operation with Blackeye and to benefit from their Colombian experience.
For additional information, please contact:
Sally-Anne Baron, Timber Capital Limited + 1 441 295 4737
Erik Nilsson, JKL Group: +46 (0)8 696 12 44
About The Forest Company: The Forest Company is a vehicle that combines socially and environmentally responsible forestry investment with unique potential for stable and attractive returns through the participation in the value chain of competitive and sustainable industries.
The Forest Company Limited ("The Forest Company" or the "Company") is a closed-ended investment company, incorporated and registered in Guernsey, since 2007 in order to take advantage of investment opportunities in trees, timberland and timber related assets. The Company focus on forest plantations in areas with high biological growth rates, such as Brazil and its neighbouring countries. In March 2008, the Company raised USD 50 million in equity capital in a private placement to institutional investors. In May 2010 the Company raised a further USD 126 million through the same means. The Company's committed the initial capital to the first two investments, both located in Brazil.
The Company aim to build a diversified timberland portfolio in terms of age, class and species that is intended to maximise the risk/return profile. The Company believe that this approach will generate both long-term capital appreciation for Shareholders and an attractive and sustainable income yield.
Timber Capital Limited is the investment manager to The Forest Company.
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