A consortium of private investors entered into an agreement to acquire assets of Tenon Manufacturing Limited and share in Taupo Wood Solutions LLC from Tenon Limited (NZSE:TEN) for $55 million on February 14, 2017. Pursuant to the agreement, a future cash payment or receipt may occur if net working capital on closing diverges from $11 million by more than a $0.25 million band. Tenon must pay a termination fee of $1.65 million if it terminates the Sale and Purchase Agreement in order to enter into an alternative transaction or the group of investors terminates the Sale and Purchase Agreement because the Tenon Board has withdrawn its recommendation of the sale. Tenon must reimburse the group of investor’s costs and expenses in the amount of $0.5 if Tenon shareholders vote against the sale. The transaction is subject to certain conditions including shareholders’ approval in the meeting to be held on March 20, 2017, staff and contract transfers and no material adverse change occurring in the clearwood business prior to the settlement. As of February 14, 2017 the independent directors committee approve the transaction. As on March 20, 2017, shareholders of Tenon approved the transaction. The deal can be terminated by group of investors if the Tenon Board withdraws its recommendations, Tenon breaches its obligations in relation to non-solicitation of alternative transactions and there is extensive damage to the Taupo plant after signing. Tenon can also terminate the transaction if it is entering into an unsolicited alternative transaction. The conditions must be satisfied by April 3, 2017. On April 7, 2017, all of the conditions have been satisfied. If all conditions are satisfied, the transaction is expected to close on April 28, 2017. Grant Samuel & Associates Pty Limited appointed as independent advisor to shareholders of Tenon Limited on the transaction. A consortium of private investors completed the acquisition of assets of Tenon Manufacturing Limited and share in Taupo Wood Solutions LLC from Tenon Limited (NZSE:TEN) on April 28, 2017.