Averon to buy Foresight Sustainable Forestry in £167m deal

Foresight Sustainable Forestry Company is to be acquired by Averon Park in a £167m deal, it was confirmed on Wednesday, less than three years after the specialist investment firm went public.

Shares in FSFC, which debuted on the London Stock Exchange on October 2021, soared on the announcement.

Under the terms of the deal, Arizona – a newly-formed vehicle owned wholly by Averon – will pay 97p per share in cash, a 32% premium to Tuesday’s closing price.

It is also giving shareholders the option to acquire one unlisted B ordinary share in the bidco for each scheme share they own instead of the cash offer.

As at 1030 BST, shares in FSFC had soared 29% to 94.32p.

Graham Ross Russell, independent non-executive director of Averon Park, said: “Since its initial public offering, the FSFC team has rapidly developed its portfolio to become a leading forestry and afforestation player in the UK.

“Demand for domestic sources of timber and high integrity carbon credits is increasing, and the transaction presents good value for all involved, and a great opportunity to grow the portfolio.”

Richard Davidson, FSFC chair, said: “We believe this offer represents good value for shareholders, and therefore we are recommending it.

“The structure of the deal means investors can continue to participate in the compelling investment fundamentals presented by the forestry and carbon credit industries through a private structure.”

Averon Park, which already owns a stake in FSFC, is a long-term private investor in sustainable infrastructure and real asset backed businesses.

Already a substantial investor in UK forestry, agriculture and sustainable land assets, it currently owns 7,292 hectares of UK forestry.

The takeover is expected to complete in the third quarter of 2024.