PrimeAg shareholders approve sale
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MELBOURNE, April 15 AAP
April 15 2013, 3:42PM
PrimeAg shareholders have approved the sale of some of its assets to a US-based farm investor, as it moves towards delisting from the share market and winding up.
Investors in the Australian rural property holder approved the sale to TIAA-CREF Global Agriculture LLC at a meeting of shareholders in Sydney on Monday.
TIAA-CREF is the financial services provider behind Global Agriculture, which is invests in farmland in the US, Australia and Brazil.
PrimeAg has been advised that TIAA-CREF Global Agriculture had received approval from the Foreign Investment Review Board for the purchase of the PrimeAg assets.
In February, PrimeAg agreed to sell four properties - Goondiwindi in Queensland, and Mullala, Crooble and Milchengowrie in NSW - to TIAA-CREF Global Agriculture.
PrimeAg also has an option to sell either the Warra Aggregation or Dodds/Lower Box properties to TIAA-CREF Global Agriculture.
If the option to sell either Lower Box or Warra is exercised before April 30, the value of the total transaction with TIAA-CREF Global Agriculture will be around $123 million to $126 million.
PrimeAg also said on Monday that it was still in talks with several parties in relation to the sale of its remaining assets.
Shareholders on Monday passed a resolution that the remaining assets, including other properties, water and other licences, and non-property assets, could be sold.
Shareholders also gave approval for an initial reduction in the company's share capital by about $106 million, which will be repaid to shareholders at 40 cents per share.
After distributing excess cash and proceeds from the sales to shareholders, PrimeAge intends to delist from the Australian Securities Exchange and commence a voluntary wind-up.
PrimeAg decided in 2012 to embark on a sale of assets and capital returns in a bid to unlock value for shareholders.
Shares in PrimeAg were down 0.5 cents at $1.225 at 1542 AEST.
By Trevor Chappell