TFS to buy Elders Forestry's plantations

Sandalwood producer TFS Corporation says it is in discussions to buy Elders Forestry's Indian and Australian Sandalwood plantations in the East Kimberley and Queensland's far north.

The proposed transaction would involve the acquisition of Elders-owned land and associated water rights, plant and equipment, Elders-owned trees and assignment of leasehold interest in leased properties.

TFS estimated the purchase price to be between $50 million and $55 million, subject to completion of due diligence and other customary conditions.

The parties will also discuss TFS' involvement in the management of Elders' sandalwood managed investment schemes.

Both TFS and Elders gave no assurance as to when an agreement would be executed, or what its final terms would be.

At 1:39PM (WST) TFS shares had risen 5.65 per cent to trade at $0.93.