ArborGen Announces Strategic Review

30 June 2021 - Global advanced genetics seedling company, ArborGen Holdings Limited (NZX:ARB) (ArborGen or the Company) advises that the Company has received a confidential, non‐binding, indicative, incomplete and highly conditional proposal from a credible third party to acquire all of the shares in, or assets of, ArborGen by way of a scheme of arrangement or other alternative acquisition structure (the Proposal). A sub-committee of independent directors of ArborGen was appointed to assess the Proposal (the Sub-Committee) and has concluded that, based on the information currently before the Sub-Committee, the Proposal materially undervalues the Company. In light of this, the Board has decided to commence a strategic review. The objective of the strategic review is to consider all options to unlock value for the benefit of all shareholders. These options could include (but are not limited to) a potential sale of all of the shares in, or all or some of the assets of the Company, or a US listing.

ArborGen is the largest commercial global seedling supplier and a leading provider of advanced genetics, for the forest industry. Employing state-of-the-art technology, ArborGen is developing high- value products that significantly improve the productivity of a given acre of land by enabling our customers to grow trees that yield more wood per acre with greater consistency and quality in a shorter period of time.

It specialises in loblolly pine (US and Brazil), radiata pine (New Zealand and Australia) and eucalyptus (Brazil and Australia) plantation forestry species. It has 18 seedling nurseries, 12 seed producing orchards and overall production capacity of 540 million seedlings annually globally.

As set out in the 27 May 2021 market announcement

(https://www.nzx.com/announcements/372976), ArborGen's 2021 financial results outlined a significantly improved outlook for the company driven primarily by increased availability of its proprietary MCP seedlings in the US.

With increased availability of proprietary advanced genetic products (MCP seedlings) in the US, improving markets in all regions, and increased demand for proprietary genetics, ArborGen believes that it is now well positioned for accelerated growth.

PwC has been engaged to assist ArborGen in undertaking the strategic review.

There is no certainty that any transaction or other change will result from the strategic review.

ENDS

Any enquiries should be directed to:

Sharon Ludher-Chandra

Company Secretary & Performance Improvement Director (NZ-based)

E: info@arborgenholdings.com

To:

NZX

From:

Sharon Ludher-Chandra

Further information on ArborGen Holdings Limited can be viewed at our web site http://www.arborgenholdings.com.

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ArborGen Holdings Ltd. published this content on 29 June 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 June 2021 10:21:01 UTC.