The Board of Phaunos Timber Fund Limited is pleased to announce that the Company's indirect subsidiary, Green China (Jiangxi) Forestry Co. Ltd has entered into two separate agreements to acquire timberland assets in Jiangxi, China.
The total consideration for both transactions is RMB 100 million, which is approximately US$14.7 million. The assets combined consist of pine, fir and other species, which are grown for the sawn timber market.
The completion of both transactions is conditional upon, amongst other things, the transfer of all forestry right certificates giving legal use rights to the land and trees to GCJ. The transactions are expected to close around the same time in the third quarter of 2010, and follow GCJ's initial timberland acquisition, which was completed in March 2010.
China's GDP grew 11.9% in the first quarter of 2010 compared to the same period last year. According to China Customs, from January to May 2010, log imports, sawn timber imports, and furniture exports grew 23.3%, 62.0%, 26.6% respectively compared to the same period last year.
Qinhai Xia, Manager of Investments and Acquisitions at FourWinds Capital Management, the Company's investment manager, commented: "We are delighted to increase Phaunos' footprint in Jiangxi
