Aussie timber company Gunns to buy ITC Timber news
01 September 2009

The Glenelg Shire, a local government area (an administrative division), of the state of Victoria in Australia, has welcomed an announcement by Australian timber company Gunns for taking over the timber processing business of ITC Timber Pty Ltd.

Gunns said it would pay $100 million for the business with two hardwood processing facilities in the Green Triangle region of south-west Victoria.

In July, the company said it had plans for building and operating a woodchip exporting facility at the Port of Portland.

According to Glenelg Shire chief executive, Stuart Burdack, the latest deal is an indication of confidence in the region's timber industry.

He added that Guns obviously is looking at their region as a very attractive region and in the last month or so have announced two major investments, which is very good for the region and the industry.

Meanwhile, Gunns has announced a one for four entitlement offer with shares priced at 90 cents a share in its bid to raise $145 million.

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Aussie timber company Gunns to buy ITC Timber