30 Oct 2012

Elders to sell rural business

12:44 pm on 30 October 2012

Elders plans to sell its main rural services business as it seeks to return value to its shareholders.

In a statement to the Australian Securities Exchange on Monday, Elders said its board had "resolved to commence a process to sell Elders Rural Services as part of an accelerated strategy to return value to stakeholders".

AAP reports rural services make up the majority of Elders' operations, supplying marketing and financial services for farmers in Australia and New Zealand.

Elders has been in talks with Ruralco Holdings about a potential merger of the two companies, but did not say on Monday whether the sale process for the rural services business involved the company.

AAP reports Elders shares were worth 25.5 Australian cents at the close of trade on Friday. Two years ago they were worth around 63 Australian cents.

The company was started in South Australia in 1839.