LONDON (Alliance News) - Phaunos Timber Fund Ltd said Wednesday it has sold its entire 14% stake in forestation company Green Resources AS for around USD8.5 million, which it said was consistent with its strategy of rebalancing its portfolio to one that comprises predominantly higher yielding, lower risk assets.
Phaunos invests in timberland and timber-related investments in New Zealand, China, Brazil, Tanzania and Mozambique.
"In late 2014 we identified several strategic objectives including reducing operational costs, lowering overall portfolio debt and the sale of higher risk assets. The sale of Green Resources is one of the last key milestones in achieving these objectives with Phaunos now in a stronger position in terms of the cash held and portfolio balance towards lower risk timberland asset," said Stephen Addicott, a partner at Stafford Timberland Ltd, the company's manager, said.
Shares in Phaunos were untraded on Wednesday, having last traded at 0.360 pence.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
Copyright 2016 Alliance News Limited. All Rights Reserved.