Other Investment Information
Selling Your Investment
Forest Enterprises operates a secondary market that you can use to sell your investment(s). The following information on selling your investment is set out below -
Selling
your Forest Enterprises investment
The
steps involved in selling on our secondary market
How
the Tender process works
What
happens after acceptance of an Offer
The
costs involved
Forest
Enterprises role
Sales
Form including full Terms and Conditions
Selling
Partnership Shares on our Secondary Market
As an alternative you can download this information as a PDF file.
Secondary Market - A Guide for
Prospective Sellers (104KB)
To download this file to your computer right-click on the
file, select 'Save as' and save to your P.C. When the download is complete
open the saved file. (You will need Adobe Acrobat Reader to view PDF files.
If you need details on how to get Adobe Acrobat Reader click here)
Selling your Forest Enterprises investment
Should you wish to sell your Forest Enterprises forestry investment you have the choice of doing so privately or via Forest Enterprises.
Should you sell privately, our involvement is only as the Share Registrar. We provide the necessary documentation and on the payment of a Transfer Fee of $75 per parcel of 200 shares, will process the transfer to action the sale.
If you wish Forest Enterprises to assist you to find a buyer, we operate a market specifically for the sale and purchase of existing forest investments called our Secondary Market. This market operates essentially under a willing buyer willing seller open tender process.
The steps involved in selling on our secondary market
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Contact Forest Enterprises to discuss your sales requirements. We will indicate the current state of the market and discuss the price you may be able to realise. The actual extent of buyer interest and the price finally realised will depend entirely upon the market at the time and cannot be predicted by Forest Enterprises.
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If you decide to pursue a possible sale via our Secondary Market, we will send you the two Forms to be completed – a Sales Form and a Share Transfer Form.
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The Sales Form is the agreement to list your investment for sale. The Share Transfer Form is required to process a sale. The partially completed Transfer Form is held in safekeeping by Forest Enterprises and only used should a sale eventuate.
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The completed Sales Form, Transfer Form (with the Seller sections completed), plus the original Share Certificate(s) in respect of the shares to be sold are returned to Forest Enterprises together with a cheque for the Listing Fee (see The costs involved below).
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Following the return of this documentation, your investment is then listed for sale. The date and time of receipt of the correctly completed Sales Form is recorded, as this is important if there are other Sellers of the same forest investment (explained below). The date also determines the Expiry Date of the listing (if unsold) following which a further Listing Fee may be payable or the listing may lapse.
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Concurrently with listing, Forest Enterprises updates the comprehensive Investment Report to reflect the current status of the investment, ready to send out in response to any Buyer inquiry.
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The details of investments for sale, including your investment, are available from both our website here and in printed form. They are also published from time to time in other marketing media.
How the Tender process works
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When an Offer is received, the price is communicated to you by fax or email (whichever you nominate in the Sales Form) plus we will endeavour to contact you by telephone.
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In this communication you will also be advised an Expiry Date that will be approximately three days from the date and time of the communication. This is the period within which you have first refusal of the Offer.
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If there is more than one Seller, the Offer is sent to the first Seller as determined by the time and date of receipt of a correctly completed Sales Form. If the first Seller declines the Offer (or the Expiry Date reached after three days) the Offer is then communicated to the second Seller and so on until all Sellers have had the opportunity to consider it.
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If you accept the Offer, a binding contract then exists between yourself and the Buyer. See below for further details of the settlement process (payment etc).
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If you decline the Offer (and subsequent Sellers have also declined the Offer), we will endeavour to contact you by telephone to discuss the options available, including any indications from you of a price you may be prepared to accept.
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Forest Enterprises will then communicate with the Buyer to see if they are prepared to increase the Offer. Should they decide to do, this will constitute a new Offer and the Tender process will be repeated.
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There is no restriction on the number of times the price in an Offer can be increased other than if Forest Enterprises deems that the new price is not materially different to the previous Offer(s).
What happens after acceptance of an Offer
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As noted above, once an Offer is accepted a binding contract exists between yourself (as Seller) and the Buyer.
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As soon as possible following your acceptance, we will forward the transfer documentation to the Buyer to be executed and returned together with payment of the price agreed plus a Transfer Fee. At this point you are asked to provide details of how you wish to be paid.
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The due date for return of the documentation and payment by the Buyer is specified in the letter and is seven working days from formal notice of acceptance of their Offer.
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The payment received from the Buyer is lodged in our special purpose trust account until cleared. Following clearance (usually 3 working days from receipt) the amount received , less the Transfer Fee and our agreed brokerage fee is forwarded to you in the manner you have requested.
The costs involved
A Listing Fee of $375 per parcel of 200 shares is payable for each term of 4 months that your investment is listed for sale.
Following a successful sale, a brokerage fee (for each parcel of 200 shares) of $350 plus 2% of the sale price above $10,000 is deducted.
The Buyer pays a Transfer Fee of $75 per parcel of 200 shares.
Forest Enterprises role
Forest Enterprises role is a coordination one, specifically to –
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Operate the market to provide the opportunity for willing Buyers to be matched with willing Sellers.
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Maintain up to date information for inclusion in the comprehensive Investment Reports.
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Act as the communication agent between the Buyers and Sellers.
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Process the associated documentation.
NOTE: Forest Enterprises provides and operates the market. We do not guarantee that you will sell your investment nor do we accept any liability should the Buyer default in its obligations to complete the sale and transfer.
Sales Form including full Terms and Conditions
Click on the PDF document below to download an example of a Sales Form that includes the full Terms and Conditions. (You will need Adobe Acrobat Reader to view this file. If you need details on ways to download this file or to get Adobe Acrobat Reader click here.)
Sales Form (48KB)
Selling Partnership Shares on our Secondary Market
The procedure for selling shares in our older style partnerships (investments co-ordinated between 1972 and 1992) operates differently.
The sale of partnership investments is governed by the pre-emptive
right provisions in the Deed of
Partnership. The shares you wish to sell, at your nominated price, must
be offered to all other Partners in the investment for a fixed period of
time (usually 28 days).
After this period, any unsold shares may then be listed for sale to
non-partners on the secondary
market at the same price that was offered to the partners. The shares cannot
be sold for a lesser price without first repeating the pre-emptive rights
process with the partners.
The costs involved
A non-refundable Listing Fee of $300 per forest is payable for the total number of shares nominated to be sold in any one forest.
A brokerage fee of $200 per transaction to existing partners is deducted after sales are confirmed.
Any unsold shares subsequently listed for sale on the secondary market for non-partner buyers have the same sellers costs as selling your Forest Enterprises investment shown above.
Secondary
Market - A Guide to sell Partnership shares (68KB)
To learn more about selling either investment or partnership shares please contact our Customer Services Manager Merv Jones. Click here for Merv's contact details.