AS one out-of-pocket investor left the Pulpwood Plantations meeting last week, he noted that the heads of the fallen bid to take over Great Southern timber schemes could have done something to ease the pain.
“At least they could have turned on the beer taps,” he said, passing the vacant bar in the inner-city Perth hotel function room where the meeting was held.
But there were no celebrations to be had.
Pulpwood, headed by local industrialist Gordon Martin and former soccer club owner Nick Tana, was one of three groups vying to take control of Great Southern’s failed timber schemes, competing with the Tony Jack-led Black Tree and Tasmanian company Gunns.
Mr Martin, who spent about $1 million putting the bid together, warned investors a couple of days before the meeting that proxy votes indicated there was not enough support to warrant travelling to the meeting.
About 25 people attended – six of them investors – to watch the official end of the Pulpwood bid.
Like all bidders, Mr Martin needed 50 per cent worth of votes to take over the timber schemes and a show of support at the meeting.
Pulpwood and rival Black Tree missed out on being nominated the preferred bidder by Great Southern receiver McGrathNicol, which was brought into the Great Southern process to look after the interests of bank creditors. It also holds considerable voting power.
Gunns was anointed the preferred bidder.
After missing out on the receiver support that it was relying upon, Black Tree was faced with the prospect of spending about $500,000 preparing its bid to go before voters.
Mr Jack opted to “suspend” its proposal last week, leaving Gunns with the only active bid to take over the assets.
The only real obstacle for Gunns in securing the vote on December 23 will be investor apathy.
As Messrs Martin and Tana left the Pulpwood meeting, they called upon Gunns to publicly release the details of agreements made with the receiver, citing the potential for the Tasmanian company to depart from its promises to the detriment of investors.
Gunns did not respond to questions from WA Business News.
