Liquidators of the Timbercorp group of companies have agreed to sell the company’s olive assets for $59.5 million to farm manager Boundary Bend Limited (BBL).
Nearly 4000 growers invested in the olive plantings under managed investment schemes stand to lose out on their investments, after a KordaMentha spokesperson confirmed that olive growers will not receive any proceeds from the sale and will be subject to the same rights petition process as the almond growers.
“The rights of almond growers will be argued and negotiated through a legal process,” KordaMentha spokesperson Mike Smith said.
The growers will be offered first rights allocation in shares when BBL stages a capital raising later this year as part of the sale agreement.
Beyond that, growers will have to petition in court for recognition of their cropping rights to get anything more than the proceeds of this year’s crop.
The sale, which is subject to regulatory approvals and customary conditions, may take up to three months to complete.
“Administration and liquidation had been particularly difficult because of the complexity of economic interests in the various assets that make up the Timbercorp group,” KordaMentha liquidator Mark Korda said.
The sale involves 3235 hectares of olive groves near the Murray River around Robinvale in northern Victoria and 2777 hectares of olive groves in the Boort district further south.
The sale also included 26,000 megalitres of water rights.
Smith said the successful bid by BBL was the highest of four offers capable of acceptance.
The sale agreement is subject to ratification by the court.
