AWB to write down Hi-Fert investment

AWB Ltd. said Friday that it has written down the value of its investment in fertiliser import and distribution firm Hi-Fert, indicating that a sale process underway for the business has failed to generate strong demand.

AWB said it had reviewed the carrying value of Hi-Fert due to current fertiliser market valuations.

Hi-Fert is jointly owned by AWB and Elders Ltd.

"The board has made the decision to write down the carrying value of the AWB investment in Hi-Fert by A$43.1 million to approximately A$11 million," AWB said in a statement.

The write down means that AWB now expects to report a net loss after tax and significant items of approximately A$251 million in the year ended September 30, at the larger end of earlier guidance of a A$259 million-A$228 million loss.

AWB will issue its full year results Wednesday (Nov 18).

US$1 = A$1.07713 (Nov 13)