It has appeared that ITC Timber Pty Ltd, a subsidiary of Elders Limited, has been acquired by Tasmanian timber company, Gunns.

It will be through a $145 million equity raising scheme that the $100 million investment will be funded. The scheme is structured as a fully underwritten one-for-four non-renounceable pro-rata entitlement offer.

The proposal of the shares in the scheme will be done at 90 cents per share.

Last week saw Gunns stock finishing trading on the Australian Securities Exchange at $1.14.

Gunns informed that two manufacturing locations in Victoria and two in Tasmania, a sales base throughout Australia and a 50 per cent stake in Smartfibre, a joint venture with fellow Launceston-based Company Forest Enterprises Australia, were included in the acquisition.

Gunns chairman John Gay said: "This acquisition creates a business with significant scale and a distribution footprint across Australia and South East Asia and the ability for the group to strengthen its presence in the most viable `wood baskets' in Australia."