Tobacco Hub to Sell

Source from:  bordermail.com.au 06/25/2007

A $9 MILLION deal to purchase Myrtleford's tobacco centre is expected to be made public this week. A major exporter has made a commitment to buy the property that was first offered for lease in March. The business is likely to employ 100 to 120 people. Directors of the Tobacco Co-operative of Victoria met to discuss the deal on Monday night. But shareholders will have the final say when a special resolution is put to growers sometime in the near future. It is believed a letter detailing the sale and meeting is already in envelopes and ready to be posted. The offer is expected to return about $3 a share. There are three million shares in the co-operative. One former tobacco grower contacted yesterday said it was unlikely they would reject the offer. The Border Mail understands the deal could be made public by Wednesday. The warehouse, which has more than 2ha under cover, has been the subject of growing speculation in recent weeks. Defence force contractors Tenix and packaging giant Visy are among the companies mentioned as likely tenants. But it appears the mystery exporter will bring a new business to Myrtle- ford. There has been some speculation that it involves the horticultural industry. The 2.8ha site on the Yackandandah Road is 69km from Albury and 46km from Wangaratta. Electrified perimeter fences and fingerprint security protect the warehouses. Container loading equipment and air-conditioned offices with conference facilities are part of the site. Disposal of the warehouse comes eight months after North East tobacco growers agreed to end the $90 million a year industry in the region. Last October the 133 shareholders agreed to a package that terminated existing tobacco contracts. British American Tobacco and Phillip Morris offered growers $14 million and supplemented by the Federal Government exit package of $16.8 million. The Commonwealth's offer was largely driven by a black market trade estimated to rob $500 million in excise from government coffers. Enditem