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Hamilton to bid on Elders assets

Distressed debt specialist Hamilton Securities is poised to make an unexpected counter-bid for the forestry assets of embattled rural services group Elders, according to The Australian Financial Review. Source: Business Spectator

Such a move would represent a surprise twist in the saga of the sale process, as Elders had agreed to sell the timber assets to Santanol, which owns and manages a sandalwood plantation near Elders’ timber assets in the Ord River region of Western Australia.

Elders is expected to make $21.55 million from the Santanol offer, while the 3,634 growers managed by Elders would stand to make about $46.5 million.

Hamilton Securities has argued that the Santanol deal undervalues the assets.

Growers are due to vote on the Santanol offer on March 14.

“Elders is being forced to get rid of these plantations because they’re under pressure from the banks,” Hamilton Securities executive Giles Craig said.

“Growers are being pressured by the responsible entity to accept a deal that seems cheap.”

Craig added that Hamilton has yet to make its formal offer because it awaits documentation from Elders.