Elders Limited
(ASX:ELD) has agreed to sell its 50 per cent interest in AWH Pty Ltd to DP World Australia Limited, expected to produce a small profit to book value.
The troubled agribusiness has made the sale for $30 million plus 50 per cent of the cash at bank held by AWH.
Elders says the purchase price will be paid by DP World only once all post completion steps have occurred and required approvals obtained.
The company then expects to put the proceeds of the sale to retire term debt, at which time Elders will advise the profit and loss implications of the sale.
CEO Mark Allison says the sale represents a substantial completion of the company’s programme to sell non-core assets and reduce term debt.
Elders narrowed its interim loss to $9.2 million in the six months to the end of March 2014.
