Gunns in talks with buyer for forests
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Gunns has announced to the ASX that it's in talks to sell part of its forest resource. (ABC News)
Tasmanian timber company Gunns has entered into negotiations with an international forestry investor for the sale of part of its forest resource.
The sale of the forest supply is part of Gunns' bid to raise capital and shore up its balance sheet.
Earlier this month Gunns successfully raised $336 million from an institutional share offer, and is attempting to raise another $91 million from a retail share offer which closes today.
A spokesperson for Gunns says the sale of the forest resource is expected to raise around $170 million, which combined with money raised from the institutional share offer would reduce its debt by half.
The negotiation period ends in late October.
