Kangaroo Island Plantation Timbers Ltd (ASX:KPT) has rejected a second offer received from KI Phoenix Pty Ltd for all of its land assets.
The revised offer comprises cash consideration of $27.5 million, as well as the right for the company to harvest and sell any pine timber on the relevant land.
KPT remains of the view that its land assets are appropriately valued at $59.23 million for the reasons set out in its target’s statement dated May 17, 2021.
“Below value”
The company also notes that this value is conservative in comparison to equivalent land on Kangaroo Island and comparable high rainfall areas of southern Australia, with and without trees.
“It follows that KI Phoenix’s revised offer is significantly below the value of KIPT’s land assets,” KPT said in a statement.
“The company has considered the offer and has notified KI Phoenix that the offer is rejected.”
KPT shares last traded at $1.15 and the company’s market capitalisation pre-open stood at approximately $64.9 million.