FEDERAL Treasurer Wayne Swan has approved a joint proposal from two companies to buy the assets of the Cubbie Group in Queensland, which was placed into voluntary administration three years ago.
The buyers are Shandong RuYi Scientific & Technological Group, a textile manufacturer owned by Chinese and Japanese interests, and the locally owned agricultural company Lempriere Ltd.
The sale is subject to the new consortium agreeing to a number of important undertakings.
Mainly that RyYi has undertaken to sell down its interest to no more than 51% with three years.
Lempriere will be responsible for operating and managing Cubbie Group, including the sale of cotton produced, in conjunction with the existing management team.
The proposed purchase will not impact on water management arrangements as Cubie Group will remain subject to state and commonwealth regulations. The group has water rights in the Condamine-Balonne catchment area.
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