Forest Holidays

Department for Environment, Food and Rural Affairs written question – answered on 3rd July 2018.

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Photo of Lord Hodgson of Astley Abbotts Lord Hodgson of Astley Abbotts Conservative

To ask Her Majesty's Government what is the interest of the Forestry Commission in Forest Holidays Group Ltd as regards (1) percentage of voting rights and (2) percentage of share ownership; and what changes to these interests have occurred since September 2012.

Photo of Lord Gardiner of Kimble Lord Gardiner of Kimble The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs

Forest Holidays is a Joint Venture established under the Regulatory Reform (Forestry) Order 2006. Under the 2006 Agreement between Forest Holidays and the Forestry Commission, the Commission retained a 49% stake in the Joint Venture.

A refinancing agreement was brokered in 2012 where the Forestry Commission interest in Forest Holidays represented 20% of the equity stake in the company.

A further refinancing of Forest Holidays took place in 2017, whereby the Forestry Commission retained its full equity interest as a 13.4% stake in the business.

The 20% voting rights that the Forestry Commission held in 2012 was linked to equity participation, and could be diluted down to a minimum of 10%. Voting rights that the Forestry Commission negotiated as part of the 2017 refinancing are fixed higher than equity share at 17.1% and are not subject to dilution. The 2017 voting rights also carry increased representation and greater access to information than before.

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