The parent company of Sino-Forest is listed in Toronto although all the company’s assets, 230,000 hectares of forest plantations, are in southern China. That has prompted Allen Chan, the company’s colourful CEO to announce plans to spin off the plantation assets for a Hong Kong listing, which could raise between $70-100 million dollars. However, there are no comparable companies listed in Hong Kong, meaning the company’s valuation will require plenty of investor education, says Chan.
Even international comparisons will be difficult because while Southeast Asia has plenty of timber companies, there are not any that deal with the management of plantations. Most companies in the regions carry out their...
