Elders Limited in trading halt as it assesses business division bids

Elders Limited has entered a trading halt as it begins assessing final bids for its Elders Rural Services and Futuris Automotive businesses.

In a statement to the ASX, Elders advised it was “in receipt of one or more final or near final bids for each of its Elders Rural Services and Futuris Automotive businesses.

"As those bids require analysis, consultation with secured lenders and consideration by the Elders Board and potentially further negotiations on key terms, Elders is not in a position to make an immediate announcement in connection."

Elders Limited has sought that the trading halt remain in place until Tuesday (April 18) or until further announcements are made.

Elders has net debts of $295 million and a market cap of about $40 million.

Both businesses have had significant write-downs - Futuris was written down by $166.5 million to $75 million and rural services, by $52 million.

For its 2012 financial year to September 31, Elders Limited reported a statutory loss after tax of $60.6 million compared with loss of $395.4 million in 2011.

Elders Limited announced plans to sell the rural business in October last year.

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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