Just over a year since being devastated by bushfires, Kangaroo Island Plantation Timbers (ASX:KPT) has got a takeover bid from Samuel Terry Asset Management.

The timber grower saw over 90 per cent of its plantations on Kangaroo Island damaged by fires which resulted in a substantial write-down of its assets and several weeks voluntary suspension from the ASX.

Ever since, it has been rebuilding. While its fire-damaged timber has some value left – and the timber market is showing solid signs with prices gaining almost 400 per cent in 12 months – the clock is ticking before the wood rots and loses all remaining value.

The company has also been trying to built a port at Smith Bay to export wood pellets overseas but the South Australian State Government still hasn’t signed off on it.

But Samuel Terry is evidently hopeful about this prospects, announcing it would start buying shares from today, although this was the best and final offer.


‘Certain and immediate value’

Samuel Terry director Fred Woollard told the ASX this morning his firm “was pleased to present KPT shareholders with an unconditional cash offer to acquire their KPT shares which delivers certain and immediate value”.

Stockhead contacted Woollard for further comment but he declined to reveal specifically what his firm liked about the company.

“All I can tell you is we made an offer, if people wish to exit the shares this provides the opportunity to do so,” he said.

Stockhead is seeking comment from Kangaroo Island Plantation Timbers.

The deal comes only a month after the company received a $20 million offer for its land assets but this was rejected as substantially under-valuing the assets.

The offer of $1.05 was Friday’s closing price but shares rose further today to $1.13 off the back of the takeover offer.

Kangaroo Island Plantation Timbers shares are above all-time lows but haven’t come anywhere near close to what they were before the bushfires – trading over $2.50 in the back half of 2019.

Kangaroo Island Plantation Timbers (ASX:KPT) share price chart