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TORONTO, June 8 /CNW/ - Sino-Forest Corporation (TSX: TRE) today
announced that it has completed a public offering of 34,500,000 common shares
at Cdn$11.00 per share for gross proceeds of Cdn$379,500,000. The offering
included the exercise in full of the over-allotment option by the underwriters
to purchase 4,500,000 common shares. The offering was underwritten by a
syndicate co-led by Credit Suisse Securities (Canada) Inc. and Dundee
Securities Corporation, and included Merrill Lynch Canada Inc., Scotia Capital
Inc. and TD Securities Inc. In addition to the offering in Canada, a portion
of the offering was sold on a private placement basis in the United States,
Asia and elsewhere.
Sino-Forest Chairman and CEO Allen Chan said, "China continues to be one
of the world's fastest growing economies, with increasing domestic consumption
and development, which are driving strong demand for wood fibre. The proceeds
from this offering will allow us to seize an attractive opportunity and expand
our timber holdings in Jiangxi, subject to signing our new master agreement."
Mr. Chan added, "We view the previous increase in the size of our share
offering and the full exercise of the over-allotment option for a total
offering of approximately $380 million as evidence of the recognition and
confidence that our shareholders and other investors have in our proven track
record and our ability to negotiate fibre purchase agreements in the right
places at the right times with favourable terms."
This news release is not an offer for sale of securities in the United
States. The securities have not been registered under the U.S. Securities Act
of 1933, as amended (the "Securities Act"), and may not be sold in the United
States absent registration or an exemption from registration under the
Securities Act. The Company does not intend to register any part of the
offering in the United States or to conduct a public offering of securities in
the United States.
About Sino-Forest Corporation
Sino-Forest Corporation (the "Company") is a leading commercial forest
plantation operator in China. Its principal businesses include the ownership
and management of forest plantation trees, the sale of standing timber and
wood logs, and the complementary manufacturing of downstream engineered-wood
products. The Company's common shares have traded on the Toronto Stock
Exchange under the symbol TRE since 1995.
Please note: This press release contains projections and forward-looking
statements regarding future events. Such forward-looking statements are not
guarantees of future performance of the Company and are subject to risks and
uncertainties that could cause actual results and company plans and objectives
to differ materially from those expressed in the forward-looking statements.
Such risks and uncertainties include, but not limited to, changes in China and
international economies; changes in currency exchange rates; changes in
worldwide demand for the Company's products; changes in worldwide production
and production capacity in the forest products industry; competitive pricing
pressures for the Company's products and changes in wood and timber costs.
For further information:
For further information: SINO-FOREST CORPORATION: Toronto, Dave Horsley
- Senior Vice President & Chief Financial Officer, Tel: (905) 281-8889,
Email: email@example.com; Hong Kong, Louisa Wong - Senior Manager,
Investor Communications & Relations, Tel: +852 2514 2109, Email: