Agribusiness

Elders finalises AWH sale

Terry Sim, September 26, 2014

Elders has generated $32.3 million from the sale of its half share in the national logistics business AWH Pty Ltd.

In a statement today, Elders chief executive officer Mark Allison told the Australian Stock Exchange the sale to DP World Australia Limited completed the company’s non-core divestment program.

Elders had previously announced on September 5 it was selling the AWH business for $30m plus 50 percent of the cash at bank held by AWH, less wool buyer payments for which AWH is a trustee or agent for customers.

Mr Allison said today all post completion steps have occurred and approvals obtained.

“Proceeds from the transaction were $32.3 million.

“The current Elders book value of the asset is $28.4 million,” he said.

DP World Australia is Australia’s largest container terminal operator. It has a network of four container terminals in Australia; Brisbane, Sydney, Fremantle and the Port of Melbourne.

Mr Allison said earlier this month that once the sale was finalised the path would be clear for Elders to proceed with vigour to implement its Eight Point Plan. The company also recently announced it aimed to raise $57 million through the issue of new shares to further reduce debt.

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