Anxious buyer says timber processing business has gone belly-up

An anxious buyer who had been eyeing a deal with a Chinese timber processing company has withdrawn his application.

The Indian company, Wansheng Forestry, had raised $1.3 million for the project, which would have cut the forest in two and replaced it with a forest that would have more than doubled its carbon dioxide emissions.

But the company’s investors say the project has fallen through.

“We have to get more than $10 million to make it happen, because we have not received any commitment,” said Shunsuke Sugihara, the owner of the firm’s timber processing unit.

Wansheng has declined to comment.

An investment bank, BofA Merrill Lynch, has offered $10 per share for the deal, while a Chinese-owned real estate investment trust has offered a 10 per cent stake.

A final decision is expected later this year, according to officials familiar with the matter.

There is no requirement that the company be located in India, said a person familiar with WanshenForest’s plans.