The Forest Company announces the declaration of a 3% dividend.

May 03, 2011 14:00

On Tuesday 3rd May 2011, The Forest Company ("The Company") announced the declaration of an annual dividend per share of $0.26, equal to 3% of the 31 December 2010 Adjusted Net Asset Valuation.

The commencement of harvesting operations standing plantation timber should allow the dividend to be paid out of operating income.

The record date for the dividend is 20^th April 2011 and the payment date is 31^st October 2011.

For additional information, please contact:

Vielcka D. Dutt, The Forest Company + 1 441 295 4736
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, Colombia 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 and has since committed further capital to investments in Colombia and 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.
__________

This press release is not for distribution, directly or indirectly, in or into the United States (including its territories and dependencies, any State of the United States and the District of Columbia), Canada, Australia or Japan. This press release does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States. The securities mentioned herein have not been, and will not be, registered under the United States Securities Act of 1933 (the "Securities Act").

Securities may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act. There will be no public offer of securities in the United States. No offer is directed at individuals whose participation would require additional prospectus, registration or other measures beyond those prescribed by Swedish law, or would violate applicable rules in such countries. Any Prospectus or application form relating to any offer, may not be distributed in any country in which the distribution of an offer or any offer itself requires measures as outlined above, or are contrary to the regulations in such countries.

The Forest Company announces the declaration of a 3% dividend.