| Thu 13 Oct 2005, 14:00 | | York Timber Organisation Limited - Yorkcor talks t |
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York Timber Organisation Limited - Yorkcor talks to the trees
The York Timber Organisation Limited
(Incorporated in the Republic of South Africa)
(Registration number 1916/004890/06)
Share code YRK & ISIN ZAE000008108
("Yorkcor" or "the company")
Yorkcor talks to the trees
The York Timber Organisation Limited (Yorkcor) has concluded the acquisition of
the assets of Taurus Estates, near Barberton, for a consideration of R17
million. The transaction is for the business of Taurus as a going concern,
including soft and hardwood plantations, a third of which are mature and ready
for harvesting. The business comprises, inter alia, silvicultural operations,
beneficiation of sawlogs and timber trading and processing.
Yorkcor has been trading under a cautionary for some months during which it
sought to launch a significant forest products enterprise and pursued the
control of additional sources of sawlog supply. The finality of the Taurus deal
has enabled Yorkcor to lift the cautionary today and shareholders are no longer
advised to continue to exercise caution when dealing in their shares.
Yorkcor, however, continues its quest for sawlog supplies and the expansion of
its trading divisions, which do not require the underpinning of log supply.
"Alliances have been, and are being, formed to boost additional log supplies
lines," says chairman Solly Tucker.
"This initiative opens the way for prominent black leaders and broad-based BEE
shareholders to enter the industry and participate in Yorkcor"s prosperous
prospects."
The Taurus deal has been clinched in the name of Yorkcor subsidiary, Madiba
Forest Products, on behalf of nominees selected from a short list, who will be
announced shortly. Taurus will facilitate the continued expansion of the timber
processing of the Madiba group within the aegis of Yorkcor
Part of the consideration for Taurus will be settled by way of 50 000 existing
Yorkcor shares at 1 250 cps, the ruling market price on the JSE on the day
agreement in principle was reached between the parties. Approximately half of
the balance of the consideration will be financed by way of an unsecured
vendor"s loan account over five years and the remainder settled in cash against
transfer of the forest property.
The vendors have warranted that there are no land claims of any nature in
respect of the property.
"In my chairman"s letter in last year"s annual report," says Tucker, "I stated
that, "Not since a decade ago have sawmillers had it so good". And I asked,
`are the rindepest days well behind timber men?". Certainly, to have been supine
in the face of the challenges in recent times to our security of tenure and
sources of timber supply, like so many operators have been, could have had
serious consequences for our core businesses. The mounting success of our
actions and strategies," says Tucker, "have to date effectively countered this
hazard and we look forward confidently to enhanced sustainability in Yorkcor"s
growth."
As regards BEE initiatives, Tucker says that Yorkcor has had fruitful talks.
"Stemming from our established Madiba group and the Taurus acquisition, "we are
launching a significant spring board to effectively counter the looming threat
of a shortage or concentration in forest products to take the lead in countering
the threat of dominance by monopolies who are attempting to engulf what remains
of the state"s substantial forestry assets," he says.
ISSUED FOR: YORK TIMBER ORGANISATION LIMITED
CONTACT : Solly Tucker, Chairman: 012 804 9730 / 083 456 9900
FAX NO : 012 804 8611
E-MAIL : solly@yorkcor.co.za
WEBSITE : www.yorkcor.co.za
ISSUED BY : TISH STEWART PR ASSOCIATES
CONTACT : Tish Stewart 011 325 4195 / 082 443 6399
FAX NO : 011 325 4199
E-MAIL : tish@tspr.co.za
DATE : 13 October 2005
Date: 13/10/2005 02:00:03 PM Produced by the JSE SENS Department
