The Timbercorp Growers Group (TGG) has slammed the decision by Timbercorp receiver KordaMentha to sell the failed company's almonds assets to an offshore company for $128 million.
"We are disgusted. The grower committees have been trying to put in a bid for this to remain in grower hands and we've been thwarted on a myriad of levels," TGG representative Kerree Bezencon said.
In a list of grievances sent to InvestorDaily, Bezencon said KordaMentha had delayed providing information needed for the grower proposals.
"There was a lack of notice regarding meetings and the Timbercorp website for information was down at crucial times for proxy information," Bezencon said.
KordaMentha spokesperson Mike Smith said it was "disingenuous" of Bezencon to say growers were not informed of the process.
"The growers have had since the beginning of August to organise themselves and no bid arrived from the growers," Smith said.
Bezencon also said the almond assets were sold to Olam, a Singapore-based global supplier of agricultural products and food ingredients, for far less than they were worth.
Olam chief executive Sunny Verghese told the Singapore-based The Business Times that the orchard was last valued at $275 million, not including the water rights to 40,825 megalitres that comes with the purchase.
According to some reports, the water rights are worth more than $100 million.
"We were told five months ago that we were hopelessly insolvent but the media reports show otherwise. If it was such a terrible and unviable business, why are the comments so upbeat?" Bezencon said.
However, Smith said the almond assets were simply sold to the highest bidder.
"The growers have known since the bid began that there was no money for operations and maintenance and there needed to be a sale as soon as possible," Smith said.
He said a total of seven groups put in a bid for the assets.
The TGG is now meeting to discuss the situation and to see whether there is anything further than can be done for the investor growers.
