Fletcher Challenge Forests has failed to obtain funding from its bankers for the bid to buy New Zealand’s largest forest plantation from Central North Island Forest Partnership, with whom it claims it had an exclusive agreement.

Buying the 162,000ha of trees and three sawmills worth about $NZ 1.5bn would have boosted Fletcher’s supply of timber at a time when companies in Asia are paying more for logs.

Chief executive Terry McFadgen said in a statement to the NZ Stock Exchange: ‘The company had not been able to pull together the bid in the time set. Fletcher remains an interested party in the receivership process and, given the quality of these assets, we do not rule out further interest in a purchase of the forest estate.’

Tipped to make an offer is Vela Fishing, owned by Peter and Phillip Vekas, which is extending and diversifying its operations and reportedly has plenty of cash available.