Forestry group Gunns requested a trading halt today after New Zealand-born billionaire Richard Chandler decided against buying into the Tasmanian company.
“The company has been advised that the Richard Chandler Corporation does not intend to proceed with its participation in the proposed company equity-raising as outlined to the market on February 8, 2012,” Gunns said in a statement today.
The Richard Chandler Corporation is a Singapore-based investment organisation founded in 1986. It provides capital to companies and governments in Asia, Africa, Latin America and eastern Europe, and invests in industries including telecoms, power, steel, banking and energy.
“The company is in discussions with equity investors in respect of the raising. Further information will be provided … when these discussions are concluded,” Gunns said.
A later ASX statement said: “Unless the ASX decides otherwise, the securities will remain in Trading Halt Session State until the earlier of the commencement of normal trading on Tuesday, March 13, 2012 or when the announcement is released to the market.”
Gunns shares have been falling for several weeks and were priced at $0.16 at the time of the trading halt.