Masonite plantations and mill up for sale
Masonite Africa’s board factory at Estcourt and its forestry assets in the KZN midlands are up for sale.
This follows a decision by the board in December last year to initiate voluntary business rescue proceedings after the company experienced tough trading conditions through 2015.
Finance was raised to enable the company to continue trading while the Business Rescue Practitioner, Pierre de Villiers Berrangé, seeks a buyer for the business.
Non-binding offers for the business were received from potential bidders, and a shortlist has been chosen to participate in phase two of the transaction process.
Binding offers were due to be lodged in mid-April.
Masonite Africa Ltd is listed on the Johannesburg Stock Exchange, and is 80% owned by USA-based Masonite International Corporation. The company owns seven plantations in KwaZulu-Natal with a total land holding of 22 548, of which 16 897 is planted to mainly eucalyptus and wattle. The plantations supply timber to the company’s Estcourt mill which produces hardboard, softboard and ceiling boards.