Masonite announced on 29 June that the rescue transactions set out in the business rescue plan are now unconditional, and that the effective date of the rescue transactions will be July 1, 2016.

The consortium which will acquire Masonite (Africa) Limited, and through it, the Estcourt mill, Jacobs Capital and Blackbird (Messrs Nhlangulela and Mncube), will take responsibility for the business as from July 1.

They will obtain ownership on the closing date of the rescue transactions, which will be on registration of transfer of not less than 85 percent of the aggregate value of the forestry properties, expected towards the end of July 2016.

The consortium will be focusing on a programme to revitalise and modernise the company to not only continue to supply current requirements, but to expand the product portfolio available in the future. This new leadership team’s skills and ‘built to last’ business approach which has been so successful in the past, and their local insights and commitment to Estcourt and the greater KZN region, will ensure the long term success of all who have relied on the business.

Local Timber Group, R&B will acquire and own Masonite’s forestry business and it has agreed a supply arrangement for the ongoing long term supply of timber to the mill. All employees’ jobs have been protected.

For shareholders of Masonite, the closing date of the rescue transaction will be on registration of transfer of the forestry properties which is expected during July.

Thereafter the first tranche payment will become payable to Shareholders. Shareholders will be advised in due course as to the amount they will receive per share.