Renewed focus on Rural Services as Elders negotiates Automotive sale
Elders Limited (Elders) today announced the Elders Board has rejected a bid for its Rural Services business, while it has entered into final negotiations for the sale of Futuris Automotive (Futuris).
Elders Limited Managing Director, Malcolm Jackman, said Elders is now entering a short period of exclusive negotiations with one of three final bidders for Futuris which is likely to result in a binding contract for the sale of its Automotive business.
“Elders is comfortable with how the sale of Futuris Automotive has progressed and we are confident that we will reach a binding contract very soon,” Mr Jackman said.
Mr Jackman said that the proposal received last week for the Rural Services business was rejected for a number of reasons, including value, execution risk, and other material considerations.
“Our financiers have supported the Board’s decision to reject this bid, and have again committed to providing Elders with ongoing financial support,” Mr Jackman said.
“With the pending sale of Futuris, and the continuing divestment of our Forestry assets, we are in a good position to reduce debt and work with our financiers on a number of options to become a cleaner, simpler, and more sustainable agri-business,” he said.
“We acknowledge the ongoing support of our banks, who have allowed Elders to continue trading as normal. Clients can feel reassured that they will continue to receive a high level of service and security of their proceeds, as we continue to focus on supporting their day-to-day needs.”
Elders will advise the market of any further progress to its Futuris and Rural Services business as appropriate.