Elders Limited has announced the appointment of longstanding corporate advisor, Greenhill & Co Australia (Greenhill), to assist the company with the local and international sales process for Elders Rural Services, announced last week.
In a statement to the Australian Stock Exchange this morning, Elders’ CEO, Malcolm Jackman said the company had received robust interest from a broad range of local and international prospective purchasers following the announcement earlier in the week.
“This preliminary response reinforces the Board’s view that a global sale process could accelerate return of value for stakeholders,” Mr Jackman said.
“With its 173 year history, the Elders brand is synonymous with Australian agriculture and as we expected, there is strong interest in the business from a broad range of sources so that is a good first step in the sale process.
“Elders Rural Services manages circa $12 billion a year in transactions in the Australasian agricultural sector which is underpinned by strong demand from Asia and Australia’s strong reputation for quality food production.
“The network represents a transformational opportunity for domestic rural merchandisers, or a fast track to critical market presence and volumes for international marketers and commodity traders seeking a position of proximity and scale to the growing Asian markets.
“With Greenhill appointed, we have commenced preparations in earnest. While it is too early to comment on timing for the sale, we will update the market in due course,” Mr Jackman said.
The Elders Rural Services’ sale will be conducted concurrently with the sale of the Company’s Futuris Automotive which is now well underway.
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