Cubbie Station set to sell to Chinese-led syndicate that must shed some of its equity within three years

Treasurer Wayne Swan has approved the mooted sale of the giant Cubbie Station cotton farm to a consortium led by Chinese textile company Shandong Ruyi.

Its official price is not yet known – or possibly even finalised – but it's suggested as less than the mooted price tag of $300 million plus. 

The Foreign Investment Review Board vets sales exceeding a threshold of $244 million.

The Australian family-owned wool processor Lempriere Ltd has a 20% stake in the successful consortium. which is now in the box seat to finalise sale terms with Cubbie's creditors.

Reuters reported Swan as saying a condition of the deal would be for Ruyi, which could initially take an 80% stake in Cubbie, to have to sell down its interest to 51% within three years.

Swan also said Ruyi's Australian partners would be responsible for operating the Cubbie Group, including the marketing and sale of its cotton, which must be sold in line with international market practices.

Cubbie Station covers almost 1,000 square kilometres of south-western Queensland.

It has been in administration for three years, with more than $300 million in debt incurred during a prolonged drought.