TFS to go on acquisition hunt

Sandalwood producer TFS Corporation says it is seeking to raise $US175 million to assist in future land and business acquisitions.

TFS said it would launch an international roadshow from May 2 to showcase the $US175 million offering for senior secured notes.

The company said details of the final pricing and terms of the debt would be advised to the market on or around May 16.

Yesterday TFS announced it had received a favourable product ruling for its 2011 Indian sandalwood project, which will consist of 3,000 sandalwood lots, each consisting of one sixth of a hectare.

The company said it was "expecting an improved outcome this year in the face of significantly reduced competition in the MIS sector".

Previously, the company said it would be budgeting for a "modest outcome" this year, even though seven competitors are no longer operating.

At close of trade today TFS shares inched half a per cent lower, to trade at $0.87.