Sino-Forest Corporation, a commercial forest plantation operator in China, is pleased to announce that, at a special general meeting held recently, the independent shareholders of Hong Kong-listed Omnicorp Limited 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
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.
