Gunns shoots through

GUNNS Limited has announced its has sold its Heyfield timber mill for around $28 million to a Melbourne-based consortium.

A contract for the sale of the Heyfield hardwood sawn timber business at an enterprise value of approximately $28 million has been executed and is expected to complete by the end of the month.

It is understood the mill has been purchased by the Hermal Group, which would retain the facilities management and 200 employees.

Tasmanian company Gunns has been undertaking a sales process on a number of assets and operations as part of a $400 million capital raising to help it reduce its debts and support the development of a $2.5 billion pulp mill in northern Tasmania.

Completion of this transaction will finalise Gunns’ exit from operations based on native forest wood supply. The company ceased accepting resource from native forest harvesting in Tasmania in June 2011 and has subsequently sold mainland based operations in Western Australia and now Victoria.