Scheme document published for the £167 million recommended acquisition of Foresight Sustainable Forestry Company by Averon Park
June 2024
Foresight Sustainable Forestry Company is an LSE Main Market listed Company that provides investors with the opportunity for real returns and capital appreciation driven by the prevailing global imbalance between supply and demand for timber; the inflation-protection qualities of UK land freeholds; and biological tree growth of 3% to 4% not correlated to financial markets. The Company targets a net total return of more than CPI +5% over a 5-year average.
It is the first company to receive the London Stock Exchange’s Voluntary Carbon Market designation which is the first exchange to use a public market framework to facilitate funding into climate mitigation projects that generate carbon credits. It provides market access for investors and corporates seeking exposure to carbon credits which may be issued in the form of a dividend in specie.
The Company also offers outstanding sustainability and Environmental, Social and Governance attributes and access to carbon units related to carbon sequestration from new afforestation planting.
Averon Park was incorporated in 2013 and is the parent company of a large trading group (Averon Group), operating across a diversified range of sectors predominantly in the UK.
Averon Park continues to seek opportunities to commit capital to trading businesses that offer a combination of stable and predictable cash flows, low correlation to economic, business and market cycles and relatively low default rates. These businesses tend to have significant real asset bases, limited technology risk and good operating margins, often trading in large markets with strong counterparties.
On 29th May 2024 the boards of directors of Averon Park and Foresight announced that they had reached agreement on the terms of a recommended acquisition, pursuant to which Arizona Bidco Limited, a wholly-owned indirect subsidiary of Averon Park, will acquire the entire issued and to be issued ordinary share capital of Foresight that the Averon does not already own which to be implemented by means of a Court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006.
Publication of the Scheme Document
The Perivan shareholder communications team was delighted to work with Stifel who acted as Rule 3 Financial Adviser and Broker and Gowling WLG (UK) who acted as legal adviser to Forsight on the scheme and associated ancillary documents, which were successfully published and posted to qualifying shareholders on 25th June 2024.
For further information, click here.
Perivan specialise in producing and publishing financial documents relating to shareholder and investor communications for quoted companies and are a market leader for the production of documentation relating to Mergers & Acquisitions.
