15th Sep 2015 08:51
LONDON (Alliance News) - MP Evans Group PLC on Tuesday indicated plans to focus on its Indonesian palm oil operations as it said it had reached a deal to sell its Australian cattle-fattening property in southern Queensland for AUD28.0 million.
MP Evans will sell the property to an Australian subsidiary of Fucheng Group, the Chinese automotive parts group. It said that the deal only includes the property, and that the cattle, plant and equipment at the site will be sold separately. Those assets have been valued at around USD10.0 million.
MP Evans said it had decided to sell the property some time ago, but significant interest in acquiring it has only been seen in recent months due to a strengthening of the cattle market.
The proceeds from the sale will be used to pay down its debt and to back its expansion in the Indonesian palm oil sector.
Shares in Evans were up 2.5% to 364.215 pence on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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