Friday, 29 March 2024

Announcement

MKTUPDTE: TEN: Tenon Updates Market

23 Dec 2016 09:56NZX
Tenon Updates Market

23 December 2016 - Tenon announced that it has completed its court-approved
capital return and share cancellation. This share reconstruction and cash
return of US$71 million pro-rata to Tenon shareholders (paid today), arose
out of Tenon''s strategic review of its North American distribution
operations, which resulted in the business being sold, on 1 December 2016
(New York time), for US$110 million.
In relation to the second strategic review that the Company is currently
undertaking, over its NZ-based Clearwood operations, Tenon announced today
that it has entered into exclusivity with one party, with the intent of
signing a binding sale and purchase agreement. The proposal is conditional
upon a number of items (including Tenon shareholder and court approvals)
which Tenon is currently assessing.
Grant Samuel will be asked to prepare an updated independent report to Tenon
shareholders once final agreement has been reached. That report will take
into account, amongst other things, the average adverse currency movements
that have occurred year-on-year (US$0.67 in fiscal''16 to US$.71 estimated for
fiscal''17; Euro0.60 in fiscal''16 to Euro0.66 estimated for fiscal''17).
If Clearwood is sold, Tenon will have no remaining operational assets.
Accordingly, the Company would then be liquidated, with all surplus cash
returned to shareholders. As previously advised to shareholders, the
liquidation would require the complete wind-up of the Company (which is the
''old'' Fletcher Challenge Limited''), which in turn would require the
incurrence of cost by Tenon. Although these costs are (at this stage)
uncertain and subject to change, they are currently estimated to be circa
US$8 million.
Tenon also announced today that Rodger Fisher would be stepping down from the
Tenon Board with effect from 31 December 2016. Mr Fisher''s departure was
signalled in Tenon''s Notice of Meeting for the Company''s Annual Shareholders
Meeting. Tenon''s Chairman, Luke Moriarty, said "Rodger has been a
highly-valued member of the Board since the Company''s inception and listing
in 2001. He participated in the highs and lows of the US housing cycle and
the Global Financial Crisis, and made an extremely valuable contribution to
this Company throughout. We wish him well for the future." Mr Stephen Walker
has been appointed to the Board as Rodger''s replacement. Mr Walker brings to
the Board a wealth of experience in investment management, financial markets
and governance. He is Executive Officer of Methodist Trust Association and a
director of Wood Engineering Technology Limited. The Tenon Board has
determined that Mr Walker is an independent director.

Ends
End CA:00294889 For:TEN    Type:MKTUPDTE   Time:2016-12-23 09:56:03
Views: 198
Tenon Limited Ordinary Shares
 0.3550 Change:
0.00
0.00%
 
Open:0.3550 
High:0.3550 
Low:0.3550 
Volume:0 
Last Traded:28/07/17 09:00:00 
Bid:0.3550 
Ask:0.3850 
52-Wk High:2.7500 
52-Wk Low:0.3360