Gunns Agrees to Sell Triabunna Woodchip Mill to Wealthy Entrepreneurs

July 13, 2011 - Gunns Limited said that it has entered into an agreement for the sale of the Triabunna woodchip facility in Tasmania, Autralia to Triabunna Investments Pty Ltd.

Terms of the deal call for the facility to be leased to an industry operator as a woodchip export business and to operate on a basis consistent with the Tasmanian Statement of Forest Principles, Gunns said.

In a written statement, Gunns said, "Over the past six months, Gunns sought interest in acquisition of the Triabunna facility from customers, local and international operators. A contract with a local operator was executed but, despite the best endeavors of both parties, could not be completed when scheduled on 29 June 2011."

Gunns believes that the current sale agreement, with its requirement that the facility be made available for operation as an export facility, subject to the conditions of the Statement of Forest Principles, provides an opportunity for certainty for industry consistent with the need to achieve the structural change necessary for long term viability.

Gunns expects the sale to be completed on July 15, 2011.

SOURCE: Gunns Limited

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