Toronto-listed Sino-Forest (TRE.TO) said it would buy 230 million shares of Hong Kong’s Omnicorp (0094.HK) to meet rising demand for wood in China, Reuters reported. Sino-Forest will spend US$53.8 million for the shares, which will give it a 53.7% stake in Omnicorp. Sino-Forest said it hoped through the deal to increase exports to China from Suriname, where Omnicorp and Sino-Forest have a joint venture in a forest concession operator. Sino-Forest Chief Executive Allen Chan said the deal would help the company to meet China’s "increasing wood deficit" by strengthening its supply of sustainable hardwood fiber.
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