Toronto, Ontario, Canada, 29 July 2010 -– Sino-Forest Corporation (TSX: TRE), a leading commercial forest plantation operator in China, is pleased to announce that, at a special general meeting held today, the independent shareholders of Hong Kong-listed Omnicorp Limited (HKSE:0094) have approved, among other things, Sino-Forest’s purchase of 230 million subscription shares in Omnicorp at a price per share of HKD 1.82 for a total consideration of HKD 418.6 million or approximately USD 53.7million (the share subscription).
Omnicorp is a Hong Kong-based investment holding company. The principal activities of Omnicorp’s subsidiaries consist of log harvesting, lumber processing, marketing and sales of logs and lumber products. Omnicorp’s main subsidiary is Greenheart Resources Holdings Limited. Omnicorp’s common shares have been listed on the Hong Kong Stock Exchange since 1988 under the symbol 0094.
Completion of the share subscription is expected to take place on 03 August 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 HKD 212.3 million of existing convertible bonds of Omnicorp 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, 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, with a 178,000-hectare hardwood concession and harvesting rights.
About Omnicorp Limited
About Sino-Forest Corporation
Sino-Forest is a leading, commercial forest plantation operator in China. Its principal businesses include the ownership and management of forest plantation trees and sales of standing timber, wood logs, and complementary manufacturing of downstream engineered-wood products. Sino-Forest’s common shares have traded on the Toronto Stock Exchange under the symbol TRE since 1995.