Camellia PLC
06 October 2004
CAMELLIA PLC
OPERATIONS IN AUSTRALIA
The following is the text of an announcement made this morning by Linton Park
Plc, a subsidiary of Camellia Plc.
East African Coffee Plantations Limited ('EACP'), a company listed on the
Australian Stock Exchange in which Linton Park Plc has a 70.5% interest,
announced today that its subsidiary, Yandilla Park Limited ('Yandilla'), has
entered into contracts to sell the majority of its operating horticultural farms
in Victoria and South Australia to Primary Infrastructure Fund ('PIF') and
Primary Agribusiness Fund ('PAF'), managed by the SAITeysMcMahon Investment
Group ('SAITM'). The transaction is subject firstly to approval by EACP
shareholders at an extraordinary general meeting to be held on 8th November 2004
and secondly to investor subscriptions into PIF and PAF.
PIF and PAF will acquire the farms in stages between November 2004 and August
2005 for an aggregate amount of approximately Australian $40 million in cash.
PAF will also have an option exercisable at any time before 19th June 2005 to
purchase one further farm in Victoria at a price to be agreed. Prior to
completion of the sale of the last of the farms scheduled to take place in
August 2005, Yandilla will have the right, if certain conditions are not
fulfilled by PIF and/or PAF, to terminate the entire transaction and refund the
purchase price of the farms already sold which would then be transferred back to
Yandilla.
The farms that are being sold generated an average annual profit before interest
of Australian $2.5 million during the three years from 1st January 2001 to 31st
December 2003
A condition of the transaction is that SAITM, on behalf of PAF, will enter into
a fifteen year contract with Yandilla and the associated Vitor group for farm
management, packing and fruit marketing.
The sale proceeds will in part be used by EACP and Yandilla to eliminate bank
borrowings and provide working capital that will assist the EACP group develop
its new strategy of focusing on horticultural management, packing and marketing
services. The directors of EACP have indicated that following the completion of
the sales of the farms they will consider the payment of a special dividend to
EACP's shareholders.
For further enquiries please contact Camellia Plc
Malcolm Perkins
01622 746655
MDC/vjj/988/06.10.04Camellia
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