Agribusinss Elders has sold its stake in warehouse operator AWH to DP World for more than $30 million.
Agribusiness Elders has sold its 50 per cent stake in logistics firm AWH Pty Ltd to DP World Australia for $30 million plus 50 per cent of AWH’s net cash.
AWH operates warehouses and container handling operations in Western Australia, South Australia, Victoria, NSW and Queensland.
It was established to provide wool logistics services but has since diversified to handle other bulk or containerised products.
Elders said on Friday that AWH was a profitable business but was not considered to be one of the group’s core operations.
The proceeds of the sale will be used to reduce Elders’ debt.
“This sale represents substantial completion of Elders’ program to sell non-core assets and reduce term debt,” Elders chief executive Mark Allison said in a statement.
Elders has been involved in a long process of selling non-core assets so it can concentrate on being a “pure” agribusiness.
DP World Australia is Australia’s largest container terminal operator, with
terminals in Brisbane, Sydney, Fremantle and Melbourne.
Shares in Elders were one cent lower at 21.5 cents at 1111 AEST.