Australian cattle firm price hike

By Jason Scott  |   2008-12-23  |     NEWSPAPER EDITION

AUSTRALIAN Agricultural Co, the nation's largest cattle rancher, surged yesterday to its highest in five weeks in Sydney trading after selling five ranches to reduce debt and fund a share buyback.

Australian Agricultural jumped 8.6 percent to A$1.825 (US$1.25), the highest price since November 17. Primary Holdings International has agreed to buy the properties, which have a combined value of A$250 million.

The "board intends to use the sale proceeds for the retirement of debt and to implement a capital management program including a share buyback," the Brisbane-based company said in a statement reported by Bloomberg News. The sale includes cattle on the five properties. Australian Agricultural and Primary will also create a joint venture to manage cattle, it said.

Australian Agricultural will own 21 properties after the sale. Primary Holdings International is an Australian investment group specializing in agricultural property, the statement said.