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| Temple-Inland to sell its timberland for $2.38 billion  US forest products maker Temple-Inland Inc. signed a definitive agreement to sell 1.55 million acres of timberland to an investment unit of Campbell Group Inc. for $2.38 billion. The transaction is expected to close in fourth quarter 2007. The net cash proceeds from the deal are anticipated to be approximately $1.8 billion. Following the pledge of installment notes, Temple-Inland expects to use the majority of these proceeds to pay a special dividend, which is currently estimated to be approximately $1.1 billion, or $10.25 per share, to its common stockholders. The remaining approximately $700 million of the cash proceeds will be used to reduce debt.The transaction includes a 20-year fiber supply agreement for pulpwood and a 12-year fiber supply agreement for sawtimber, the terms of which are both subject to extension. Fiber will be purchased at market prices. Temple-Inland, which operates corrugated packaging, forest products, real estate and financial services segments, said the sale is part of a plan that the company announced in February. The reorganization also includes spinning off financial services and real estate businesses. write your comments about the article :: © 2007 Construction News :: home page |