Elders has announced that it has entered into an agreement to sell Charlton Feedlot to beef industry operator Teys for just over $10 million.
The sale is in line with Elders’ program to divest in assets and reduce debt as the gross proceeds of the sale will go directly to debt reduction.
According to a statement issued to the ASX, the sale gives rise to a profit of approximately $3.95m, subject to post completion adjustments.
Elders chief executive Mark Allison said that the sale is in line with the company's new strategy.
“The disposal of Charlton Feedlot, which is not core to Elders’ strategy, marks a further step towards our commitment to simplify the business, concentrate on high return activities and reduce term debt,” he said.
The sale is expected to be finalised by 28 July.