New Zealand billionaire Richard Chandler may be going to the rescue of beleaguered Tasmanian timber company Gunns.
The Australian Financial Review reports that Singapore-based Mr Chandler is poised to emerge as a cornerstone investor in Gunns whose shares were placed in a trading halt on the Australian stock exchange yesterday, pending a capital raising and equity investment.
The AFR says Gunns was believed to be in final talks with Richard Chandler Corporation towards it taking a 25 percent to 40 percent stake.
At the end of January Gunns said its bankers had extended a $A340 million ($NZ437 million) syndicated debt facility by 10 months as it completed asset sales and finalised a pulp mill project in northern Tasmania.
Mr Chandler's net worth has been estimated at nearly $US3.8 billion ($NZ4.6 billion).
He is the biggest shareholder in Canadian-listed Chinese timber company Sino-Forest, which is facing fraud investigations by Canadian authorities after a short-seller's accusations caused the company's shares to collapse last June.
NZN