Elders chief executive officer Mark Allison.

Trading in agribusiness company Elders Ltd was halted by the ASX today as the company prepared to announce a capital-raising.

Elders requested the immediate trading halt while it undertook a bookbuild prior to a capital-raising announcement.

The trading halt will remain in place until trading starts on Monday, September 15, Elders makes an announcement or it requests trading should resume.

Elders has been selling non-core assets to reduce debt and chief executive Mark Allison recently announced the company’s proposed sale of its half share in the national logistics company AWH Pty Ltd represented “substantial completion of Elders’ program to sell non-core assets and reduce term debt.”

Market sources believe the capital-raising is being undertaken to further reduce debt and re-capitalise the business to pursue its eight point plan for development.

The eight point plan has a strategic intent to grow the company to a sustainable EBIT of $60 million and ROC of 20 percent in 2017, by offering value creating products and services through its Australian and international agribusiness networks.

Key elements of the plan include development and implementation of capital efficiency and capital reduction programs.

In the financial services sector the company aims to refine long term Joint Venture (JV) agreements on mutually beneficial terms and review JV partners where appropriate.

The plan also encompasses development and implementation of a foreign investment group to capture international new business opportunities.