The Offer

McGrath Nicol wrote to 1998 to 2006 scheme Growers on Friday 27 November 2009 enclosing a General Meeting Booklet, the Supplementary Scheme Booklet (for the relevant scheme) and Member Voting Proxy Form(s). If you are a Grower in these schemes and have not received this information by the Thursday 3 December 2009, please contact us by clicking here. You can view these documents by clicking below.

Gunns' Proposal in summary:

• Proposal to assume the role of Responsible Entity ('R.E.') for the 1998 to 2006 Great Southern forestry schemes, taking over from GSMAL, which can no longer fund them
• The Receivers, in their capacity as Receivers and Managers of GSMAL, recommend that Growers in the 1998 to 2006 schemes vote in favour of the Gunns proposal, in the absence of a superior proposal 
• Growers are expected to receive a higher proportion of proceeds from the sale of their trees compared to PPPL's proposal
• The restructure of fees will allow Gunns to cover the cash operating costs (eg: maintenance, land lease and overhead) of completing the projects and allow them to be properly managed - estimated at $100 million over the life of the schemes
• There are no additional up front cash costs for Growers   
   
• Eliminates winding-up/fire sale risk (in the event that no proposal is accepted)
• Fully funds the management, operation, harvesting and sale of trees  
   
• Allows Growers to receive a return on their investment, noting that some Growers with interests where the leases have been terminated, mostly in the Tiwi Islands, will not be entitled to share in harvest proceeds as the relevant leases have been terminated and will not be re-instated
• Delivers value for the opportunity to undertake a second rotation, which faces uncertainty over whether access to the land needed to undertake a second rotation could be secured, and whether any offer would be made to Growers, by reducing or waiving entirely the 2.5% rental fee for the 1998 to 2004 schemes
• Places the management of the schemes in the hands of a highly experienced, leading Australian forest products company
• Acquisition of various other non-scheme assets of Great Southern that will be used by Gunns to service the schemes and engagement of Great Southern forestry employees

For further details on our proposal, please click here.

It is important that all Growers in the 1998 to 2006 schemes either complete the Member Proxy Form to lodge their vote, or attend the meeting.

In order for Gunns' offer to be successful, a minimum of 50% of all Grower's woodlots in each scheme must vote in favour of the Proposal.

Click here to download the current General Meeting Booklet. For the 1998 to 2006 Supplementary Scheme Booklets, please click on the relevant link below:

1998 Growers    1999 Growers    2000 Growers    2001 Growers

2002 Growers    2003 Growers    2004 Growers    2005 Growers    2006 Growers