First tranche payment due soon

MASONITE, the listed softboard and hardboard producer placed into the business rescue process in December, said yesterday that it would make a first tranche payment of R30 a share to its 7.13 million shareholders by August 29. This payment follows the closing date of the rescue transactions on August 2 and the payment of the full purchase price for the forestry operations and the hardboard and soft board production operations was paid into the share repurchase bank account under the control of the business rescue practitioner on August 4. Pierre Berrange, Masonite’s senior business rescue practitioner, said the transaction was subject to SA Reserve Bank approval and an announcement would be released once this had been received. A further payment would be made within 60 days after this approval. The plan previously approved and adopted by shareholders provided for the settlement of creditors claims and a distribution to shareholders, anticipated at R33.38 a share. Masonite’s business rescue plan included the sale of Masonite’s forestry business to World Hardwood for R385 million; conclusion of a subscription agreement between Masonite and Grey West Fencing (Millco) in terms of which Millco would subscribe for 1 000 ordinary shares in Masonite for R1 000; sale of the plant and equipment of the Mill to Warhorse Private Equity for R100; and the repurchase by Masonite of its entire issued share capital other than the shares subscribed for by Millco. – Roy Cokayne

NEPI