Futuris had advised its 2007 annual general meeting of its plans to divest its shareholding.

Despite generating significant interest and recognition of value in AAco and Futuris' strategic shareholding, none of the proposals arising from the sale process since then have had certainty of execution or timing.

Accordingly, Futuris says it has elected to terminate the sale process immediately, in order to bring the necessary certainty for its asset management and strategic planning.

Futuris says that its earnings for the 2008 financial year are likely to reach the current range of market expectations.

Underlying EBIT is projected to grow strongly on the 2007 result of $164.7 million, and is expected to be at the higher end of the range of market forecasts of $154 million to $183 million.

AAco says it can now move forward with confidence on a range of initiatives designed to take advantage of renewed international interest in the value and importance of agricultural production.

AAco says it looks forward to fulfilling and enhancing plans embarked upon over recent years to grow shareholder wealth underpinned by quality land and cattle portfolios and established food brands.

Market recognition of the strategic and capital value of basic food production operations and agricultural land has increased significantly since the divestment proposal was announced. This climate is expected to be beneficial for AACo.

SOURCE: Futuris Corporation statement to ASX.