Goodman Fielder on track for asset sale

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Food manufacturer Goodman Fielder may announce the sale of its commercial edible fats and oils business this week, the Australian Financial Review reported.

AFR said today Goodman was on track to sell the business, which processes edible fats and oils and supplies food manufacturers and wholesalers, for between A$200 million and A$300m ($251.4m and $377.3m).

The unit's book value is A$145m.

Goodman formally put the business on the block in May, appointing Citigroup as adviser, saying it wanted to increase its focus on the manufacturing and marketing of branded consumer food products.

The AFR said potential buyers included US agri-products group Cargill, Dubai-based consumer food group IFFCO, Olam International, CTG Wilmar and Peerless Foods.

Funds raised through the sale are likely to be used to reduce Goodman's A$1.1b debt.

The AFR said an announcement was likely before Goodman's annual meeting, scheduled for this Thursday in Melbourne.

- © Fairfax NZ News