Tuesday, 19 August 2008

Gunns and the sale of assets

Discussion about the possible reasons for Gunns proposing to sell $170 million of their plantation assets has largely overlooked the fact that $120 million worth of hybrid securities called FORESTS (Frankable Optionally Redeemable Equity Settleable Transferable Securities) which trade on the ASX under the symbol GNSPA need to converted to shares or redeemed by 14 October 2008 or else Gunns may face an increased payment of 2.50% pa to the holders of the securities.