Agribusiness Elders Ltd
(ASX:ELD) CEO Malcolm Jackman has responded to news yesterday that the company is being investigated by the Australian Securities and Investments Commission into its compliance obligations after a recent profit downgrade.
Yesterday it was revealed that ASIC is making enquiries into Elders compliance with continuous disclosure obligations after issuing a profit downgrade in June.
Mr Jackman told the Australian Financial Review that Elders is working quickly and closely with ASIC, confident that the regulator will say their disclosure is fine.
The investigation by ASIC ads to growing concerns for the company who flagged a full year loss of between $8 and $14 million, compared to previous guidance for profit of $55.7 million.
When asked if the company was a prime takeover target, Mr Jackman said to The Financial Review that this has not been discussed by the board and no approaches had been made.
Elders booked a loss of $466.43 million for the year to September 30, 2009.
