TORONTO, July 29, 2010 /CNW/ - Sino-Forest Corporation ("Sino-Forest") (TSX: TRE), a leading commercial forest plantation operator in China, is pleased to announce that, at a special general meeting held today, the independent shareholders of Hong Kong-listed Omnicorp Limited ("Omnicorp") (HKSE:0094) have approved, among other things, Sino-Forest's purchase of 230 million subscription shares in Omnicorp at a price per share of $1.82 for a total consideration of HK$418.6 million or approximately US$53.7million ("the Share Subscription").
Completion of the Share Subscription is expected to take place on August 3, 2010. Upon completion, Sino-Forest's voting interest in Omnicorp will increase from approximately 19.8% to approximately 53.5% of the enlarged issued share capital of Omnicorp. Sino-Forest also holds HK$212.3 million of existing convertible bonds of Omnicorp (the "Existing Convertible Bonds") that were acquired in November 2007 and February 2009. Following completion of the Share Subscription and assuming full conversion of the Existing Convertible Bonds, Sino-Forest's interest will increase to approximately 59.9% of the enlarged issued share capital of Omnicorp.
Omnicorp has a 60.4% ownership in Greenheart Resources Holdings Limited ("Greenheart"), and Sino-Forest, through its wholly owned subsidiary Sino-Capital Global Inc., owns a 39.6% minority stake. Greenheart is one of the largest forest concession owners and operators in Suriname, South America with a 178,000-hectare hardwood concession and harvesting rights.
About Omnicorp Limited
Omnicorp is a Hong Kong-based investment holding company. The principal activities of Omnicorp's subsidiaries consist of log harvesting, lumber processing, marketing and sales of logs and lumber products. Omnicorp's main subsidiary is Greenheart Resources Holdings Limited. Omnicorp's common shares have been listed on the Hong Kong Stock Exchange since 1988 under the symbol 0094. Learn more at www.omnicorplimited.com.
About Sino-Forest Corporation
Sino-Forest is a leading, commercial forest plantation operator in China. Its principal businesses include the ownership and management of forest plantation trees and sales of standing timber, wood logs, and complementary manufacturing of downstream engineered-wood products. Sino-Forest's common shares have traded on the Toronto Stock Exchange under the symbol TRE since 1995. Learn more at www.sinoforest.com.
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 Sino-Forest 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 are not limited to, changes in China and international economies; changes in currency exchange rates; changes in worldwide demand for Sino-Forest's products; changes in worldwide production and production capacity in the forest products industry; competitive pricing pressures for Sino-Forest's products; and changes in wood and timber costs.
SOURCE Sino-Forest Corporation
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