Investorideas.com


Be a guest or sponsor our podcasts - learn more about us : 800 665 0411


Share on StockTwits

Pope Resources Shares Rise 35% on Rayonier $554 Million Takeover Bid

Source: Streetwise Reports

 

January 16, 2020 (Investorideas.com Newswire) Pope Resources LP shares set a new 52-week intraday high price today after the timber resources firm announced that it agreed to be acquired by Rayonier for $554 million, or $126.91 per unit. The transaction is expected to close in mid-year 2020 subject to approval of Pope's unitholders and customary regulatory approvals.


This morning timber resources management and timberland and natural resource property ownership company Pope Resources A Delaware LP (POPE:NASDAQ) announced that it has entered into a definitive merger agreement to be acquired by Rayonier Inc. (RYN:NYSE), a leading timberland real estate investment trust. Under the terms of the agreement, Rayonier will acquire all of the outstanding limited partnership units of Pope Resources for consideration consisting of equity and cash.

The transaction sets a valuation for Pope Resources LP equity at $554 million, or $126.91 per unit. An additional $10 million in consideration is expected to be paid to the General Partners entities for their interest raising the total to $564 million.

The report indicated that the agreement has already been unanimously approved by the boards of directors of both companies as well as the special committee of Pope Resources' board composed solely of independent directors. The transaction is expected to close in mid-2020, requires approval of a majority of the Pope Resources unitholders and is subject to customary closing conditions and regulatory approvals.

The agreement specifies that "Pope Resources unitholders will have the right to elect to receive (i) 3.929 common shares of Rayonier, (ii) 3.929 units of Rayonier Operating Partnership LP, or (iii) $125 in cash in exchange for each unit of Pope Resources, subject to a proration mechanism described in the report."

Rayonier's President and CEO David Nunes commented, "We are delighted to be combining two premier pure-play timber organizations using an innovative tax-deferred UPREIT structure...Pope Resources has a strong track record as a best-in-class Pacific Northwest timberland operator and possesses an excellent set of assets in high-quality markets. Our two organizations have very compatible cultures, a complementary set of assets and a shared dedication to value maximization through intensive silvicultural practices and higher-and-better-use real estate operations. The addition of these high-quality Pacific Northwest timberlands increases Rayonier's ownership in the region to 504,000 acres, adds 57 MMBF to our sustainable yield, increases our proportion of Douglas-fir inventory and offers a complementary age-class fit. We look forward to completing this transaction by mid-year, which continues our strategy of adding high-quality timberlands in strong log markets and building long-term value for our shareholders through prudent capital allocation."

Tom Ringo, president and CEO of Pope Resources, added, "This transaction is the culmination of a thorough process undertaken by Pope Resources' board to maximize value for our unitholders...Rayonier is the leading pure-play timberland REIT, with a well-diversified portfolio of timberlands and an established track record of creating long-term value from its assets. This transaction will provide our unitholders with the opportunity to defer capital gain recognition and participate in Rayonier's long-term upside potential, benefitting from a well-managed and diversified timberland portfolio while still enjoying a strong dividend yield. Like Pope Resources, Rayonier has a rich heritage of sustainably managing timberlands, and we look forward to working closely with them to realize the benefits of this combination on behalf of our unitholders."

Rayonier is a leading timberland real estate investment trust (REIT) with a market cap of around $4.2 billion headquartered in Yulee, Fla., which is located about 25 miles north of Jacksonville. The company stated that it has assets located in some of the most productive softwood timber growing regions in both the U.S. and New Zealand and as of September 30, 2019, it owned, leased or managed a total of approximately 2.6 million acres of timberlands in those countries.

Pope Resources is a publicly traded limited partnership that is engaged primarily in managing timber resources on its own properties, as well as those owned by others. The company owns and manage 125,000 acres of timberland and higher-and-better-use properties in the state of Washington. The firm advised that it also co-invests in and consolidates three private equity timber funds that own 141,000 acres of timberland in Washington, Oregon and California.

Pope Resources began the day with a market capitalization of around $407 million and approximately 4.36 million outstanding shares. POPE shares opened nearly 30% higher today at $120.15 (+$26.70, +28.57%) over yesterday's $93.45 closing price and established a new 52-week high price this morning of $138.99. The stock has traded today between $120.15 and $138.99 per share and is currently trading at $125.62 (+$32.17, +34.42%).

Disclosure:

1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.

3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

More Info:

Investorideas.com Newswire

This news is published on the Investorideas.com Newswire - a global digital news source for investors and business leaders


Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.

More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/ and tickertagstocknews.com

Global investors must adhere to regulations of each country. Please read Investorideas.com privacy policy: https://www.investorideas.com/About/Private_Policy.asp






Gold Mining Stocks - Gold Mining Stocks Directory, Gold Stocks News, Research and Resources

Gold-MiningStocks.com - investing ideas in gold and mining stocks

Like Gold Stocks? View our Gold / Mining Stocks Directory

Get News on Mining Stocks