Gunns ponders new image with name, city change

April 11, 2012

Woodchipper Gunns has confirmed that it is considering a name change and moving its headquarters from Tasmania as it continues its bid to develop a controversial $2.5 billion pulp mill at Bell Bay.

"I can confirm that Gunns is exploring a number of things like name changes and headquarters relocations," a Gunns spokesperson said on Wednesday.

"That's part of their (Gunns') endeavour to properly position the company to get the pulp mill up, which is what they're focused on at the moment. Nothing's been finalised."

The spokeswoman said she believed that Enpax Australia was of the names under consideration.

She said the possible changes were aimed at reflecting the company's intended major activity of exporting pulp to Asia.

"While the pulp mill will be at Bell Bay, where the headquarters is doesn't really matter ... It doesn't have to be in Tasmania, particularly."

Gunns is seeking to raise about $400 million to cut debt and support the development of the pulp mill.

On Tuesday, Gunns confirmed it was proceeding to formulate an equity offer as detailed in an announcement on March 26.

Gunns shares were placed in a trading halt on March 9 after the Singapore-based Richard Chandler Corporation (RCC) decided against investing $150 million in Gunns.

The investment was to have been part of a proposed $280 million capital raising for Gunns that would have given the RCC a cornerstone stake in the woodchipper.

The withdrawal of RCC prompted Gunns to reconsider its capital raising plans, and it chose to seek to raise $400 million instead of $280 million.

Gunns shares have not traded on the Australian Securities Exchange (ASX) since March 9, when they were at 16 cents.

AAP

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