By Matt Birney for Business News Western Australia
ASX listed Alterra is taking a page out of Wesfarmers’ playbook with a proposal to demerge its carbon forestry business and focus on the development of its agribusiness products.
Wesfarmers’ demerger will effectively create two companies, a lower growth but cash generating business in Coles and a higher growth business in Wesfarmers.
With striking similarities in structure to the Wesfarmers/Coles de-merger, Alterra will issue 85% of the shares in its carbon credit generating forestry business directly to its shareholders with the ASX listed company retaining a 15% stake in the private entity to be named Carbon Conscious Investments.
Demergers are a way of… read on