Agriterra sells aviation assets to fund animal feed expansion

27th Jul 2016 14:04

(ShareCast News) - Agriterra announced on Wednesday that it has agreed the sale of its Beech King Air F-90 plane to a registered aircraft retailer in South Africa for consideration of $0.29m, which is expected to complete within the next few days.The AIM-traded firm said the sale follows the recent disposal of its Aerospatiale Alouette 3 helicopter to the same purchaser for a consideration of $80,000.A further sale of the company's Robinson R44 helicopter has also been agreed with the same purchaser for $0.2m, Agriterra's board added, with that sale expected to complete on or around 5 August.All considerations receivable are payable in cash upon completion, and the assets have been sold at their market value, which exceeds their collective current book value of approximately $0.26m."The sale of these aviation assets is part of the company's ongoing operational improvement programme in Mozambique," Agriterra's board said in a statement."The proceeds of the sale of these assets will be applied, in part, towards the acquisition and operation of an animal feed pelletiser machine."Agriterra said the pelletiser, which is due for shipment from South Africa to the company's facilities in Chimoio, Mozambique this week, will provide it with access to an additional revenue stream by converting the 'bran' by-product from the company's grain processing operations this into processed animal feed, which can be sold at a premium to farmers within the region."Further information on the operations of the pelletiser will follow in due course, following installation, commissioning and initial sales," the board added.