fcl-aac, page-10

This is good news. FCL are on track! Go Mr Jackman.

$89.8 million proceeds on completion to be applied to debt reduction
Futuris Corporation Limited (ASX:FCL, “Futuris”) today announced that it has entered
into a binding agreement to sell 52.8m shares (representing a 19.9% interest) in
Australian Agricultural Company Limited (AAco) to interests controlled by prominent
Australian barrister and pastoralist, Allan Myers, for $89.8m ($1.70 per AAco share).
Futuris holds its interest in AAco on its balance sheet at $1.18 per share. On completion of
the transaction, proceeds will be used to retire debt and strengthen the company's balance
sheet.
The sale is conditional upon Mr Myers completing the sale of the Tipperary and Litchfield
Stations to AAco which is scheduled to complete on or about 16 April 2009. AAco has
entered into a conditional binding agreement with Mr Myers to effect the acquisition of the
Tipperary and Litchfield Stations.
Futuris' residual 23% shareholding in AAco remains non core. Citi, ABN AMRO and ABN
Amro Morgans will work jointly on a strategy for the orderly sale of this stake.
Futuris CEO, Malcolm Jackman, said : “We have been looking at a number of options for
disposal of our stake in AAco as we move Futuris away from passive investments to be fully
focused on being an owner / operator of core businesses in which we have demonstrable
skill and market advantage and which match our cash operating earnings objectives,” Mr
Jackman said.
“In that regard, the sale of a substantial part of our holding in AAco to a committed pastoral
investor is an excellent fit with all stakeholders’ interests.
“It provides AAco with a committed, specialist cornerstone investor which in turn should
facilitate the subsequent sell down of our remaining interest in AAco. As well, the sale is set
to realise good value for our shareholders given the size of the stake to be sold. It is the winwin
outcome that we have been seeking.
“Assuming completion of the transaction as envisaged in April, this puts Futuris firmly on
track with the Agenda for Change that I outlined to the market last December.
“The half year results we have also announced today reflect the impact of both extraordinary
market and seasonal conditions as well as the short term costs of implementing essential
strategic, operational and balance sheet changes to put Futuris on a path to more predictable
and sustainable returns for our shareholders based on operating earnings.
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“The going is certainly tough, but with our announcement of the agreement on AACo and the
other divestments and cost containment programs we have put in place, shareholders have
clear evidence that we are serious about repairing the company’s balance sheet and
business model.
“We are working very hard to give our shareholders good, tangible reasons to stick with us
as we work through our agenda for changing the outlook for the group,” Mr Jackman said