Chandler stresses responsible investment in Gunns deal

Richard Chandler stresses responsible investment framework in Gunns deal

By Paul McBeth

Feb. 22 (BusinessDesk) – New Zealand-born billionaire Richard Chandler has talked up the responsible investment approach he operates with as his investment vehicle undertakes due diligence on Tasmanian timber company Gunns.

In response to local media reports and the “high degree of public interest” the Richard Chandler Corp (RCC) said it’s evaluating a potential A$150 million stake in ASX-listed Gunns, against the backdrop of its own “socially responsible investment framework”.

That includes whether social value is created, such as establishing jobs and improving sustainable environmental practices, attracting local support, imposing strong corporate governance, making appropriate financial returns and setting up conservative debt levels, it said in a statement.

“The Richard Chandler Corporation notes the progress that Gunns Limited has made in some of these areas in recent years,” the company said. A further statement will be made once due diligence is completed.

The investment is part of a proposed A$280 million capital raising for Gunns that would give RCC a cornerstone stake in the company and tap shareholders for more funds. The shares fell 2.6 percent to 18.5 Australian cents on the ASX today.

Chandler co-founded Sovereign Global Investment with his brother Christopher in 1986, primarily investing in emerging markets. In 2006, Sovereign demerged, and Richard Chandler established Orient Global, which is now known as RCC, according to the company’s website.

That vehicle is split into two arms, the Creative World Group which is a social investment group focusing on education and healthcare, and the Capital group which invests in a wide range of industries.

(BusinessDesk)

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