Elders (ELD) is continuing its rebirth as a rural services business by appointing as chairman a man with long experience in the sector.
In a statement to the ASX yesterday, Elders said that chairman, John Ballard, was retiring and would be replaced by Mark Allison.
"Mr Allison has extensive experience in the agricultural sector in both senior executive and non-executive roles, and is a natural fit for the agri-business as it focuses solely on its rural and regional clients.
"Mr Allison’s experience within the agricultural sector ranges from research through to executive management, including currently serving as CEO of Grain Growers Limited among other industry roles.
"Mr Allison has previously served as Managing Director of Wesfarmers Landmark Limited, Farmoz and Wesfarmers CSBP Limited, General Manager of Crop Care Australasia and General Manager of Incitec Limited," Elders said in the statement yesterday.
Mr Ballard told the company that he will step down and retire immediately as a director.
In his first comment as chairman, Mr Allison said the Elders Board extended its sincere thanks to Mr Ballard for his management of the company through a very complex restructuring and divestment program it has pursued over recent years.
“The process of returning Elders to its core rural services focus is now nearing its final stages and we thank John for his contribution to this process,” Mr Allison said.
Elders is progressing plans with its financiers to strengthen its operations and financial position and expects that this process is likely to take until mid to late August.
The return to its rural roots (which was its main business before John Elliott launched a takeover for Elders (when it was known as Elder Smith Goldsborough Mort) via a merger with Henry Jones (which Elliott and others controlled) back in 1981. At the time Elders was the country’s major rural services group (along with Dalgety and other companies).
Elders is currently negotiating with one of the three unnamed bidders to finalise the sale of Futuris which is valued at $75 million in the books.
On June 18, Elders announced that it had rejected an offer for the rural business from Ruralco because the amount offered was too low. The business is valued at well over $300 million and with $385 million in debt, a low price would have meant losses for the company’s banks.
By trying to return to its rural roots, Elders is trying to build value to give comfort to its banks.
The market was reserved about Elders with the shares dipping nearly 3% to 6.6c.
ELD 1Y – Elders edges back to the bush
