SOE Privatization: purchase of sustainable forestry

Themes: Capacity Development | Economic Growth | Environmental Sustainability | Private Sector Development | Social Development

Guinness Gallagher undertook bid management for Fletcher Challenge’s bid for the state-owned Forestry Corporation of New Zealand, the then owner of the world’s largest, contiguous, homogenous, sustainable forestry plantation. Fletcher Challenge was formerly the largest company in New Zealand, with holdings in construction, forestry, building, and energy, initially within New Zealand and then internationally.

Prior to the sale of the SOE, the professional services provided by our team of experts included managing government relationships and working to resolve a major blockage to the sale of the SOE; namely the underlying and unresolved indigenous land issues which the government needed to find a solution for prior to being able to bring the SOE into a sales process. Our experts were able to develop a solution acceptable to both the indigenous land claimants and the government resulting in the commencement of the sales process.

Once the sale process commenced, our team of forestry and legal/commercial advisors, together with our specialist indigenous peoples’ advisors, then worked with our client on the bid management process culminating in a successful bid of NZ$ 2.02 billion, the largest SOE sale in New Zealand at that time.

The themes and sectors covered by this project were as follows: -

Theme Sub-Theme
Capacity Development - Client relations, network and partnership development
Economic Growth - Developing rural areas
Environmental Sustainability - Global and regional trans-boundary environmental issues
  - Natural resource conservation
Private Sector Development - Policy reforms
  - Private sector investment
  - Privatization
Social Development - Indigenous people
Sector Sub-Sector
Agriculture, natural resources, rural development - Forestry
  - Land-based natural resource management
Finance - Infrastructure finance and investment funds
Industry and Trade - Industry and trade sector development
  - Large and medium industries
Public Sector Management - Reforms of state owned enterprises
  - Social protection initiatives
Transport - Multimodal logistics
  - Rail transport (non-urban)
  - Road transport (non-urban)
  - Water transport (non-urban)