Kangaroo Island Plantation Timbers Ltd (ASX:KPT) has advised that the takeover bid by Samuel Terry Asset Management Pty Ltd as trustee for Samuel Terry Absolute Return Active Fund (STAM) has been unsuccessful with the offer period now closed.
At the close of the offer period at 4.10pm on June 18, 2021, STAM had acceptances for 1,100,532 shares, equivalent to 1.95% of the shareholding of the company. This takes STAM’s total holding in KPT to 28.18%.
Shares have been as much as 6.19% higher today to $1.115.
“Offer undervalued KPT”
The board acknowledges the support received from KPT shareholders and looks forward to continuing with its recovery strategy as described in the target statement.
KPT chairman Paul McKenzie said “Shareholders have accepted the view of the company board that the offer undervalued KPT and have endorsed the strategy as outlined in the target statement, which identifies the value drivers for the business, focusing on monetising the fire-affected assets to release the full value of the land.
“On behalf of my board, I wish to extend our gratitude for the support received, and reaffirm our commitment to working in the interests of all shareholders towards rebuilding the business.”
Smith Bay Seaport
Central to the company’s strategy to monetise its forestry assets is the proposed seaport at Smith Bay, which is currently subject to a major project planning process that commenced in October 2016 and has run for more than four years.
At the present time, KPT is unable to advise when the responsible minister, the Minister for Planning, may make a decision, nor what that decision may be, as the process is not bound by time or outcome.
In February 2021 KPT commenced sales to mainland customers by SeaLink ferry and in March 2021 the first barge of logs destined for a South Korean customer was dispatched from Kingscote.
The company will continue to use these alternative sites while the approval process for the Smith Bay Seaport remains unresolved.