Timbercorp olive assets sold
More than 4000 investors in Timbercorp's managed olive schemes will get the chance to own a piece of the company set to take over the projects, after liquidator KordaMentha struck a deal to sell the assets for $60 million.
Boundary Bend, which has managed the olive schemes under contract for several years, beat two rival parties in a bidding war for the assets.
Under the deal, expected to settle within three months, Boundary Bend will take control of 6ha of olive groves in Victoria, an olive processing facility and the 19.4 per cent stake Timbercorp owned in Boundary Bend.
Boundary Bend plans to restructure the schemes and conduct a rights issue to raise capital to finance the olive maintenance and harvest. The 4000 investor growers in the olive schemes will be given priority under the capital raising.
The deal will make Boundary Bend the biggest producer of extra virgin olive oil in the southern hemisphere.
Investor spokeswoman Kerree Bezencon said growers welcomed the deal.
KordaMentha has already struck deals to sell Timbercorp's forestry and almond assets, although growers are fighting the almond sale on the grounds it does not leave enough on the table for them after the banks' debts are paid.
