Kiland Limited has finalised the sale of its pontoon asset, which it announced in December last year, and has received the full US$4.3 million (around A$6.06 million) in cash proceeds.
Read: Kiland Ltd sells pontoon for A$6 million
Proceeds to fund return to agriculture
The pontoon has been sold to Berkshire Seas Limited and Kiland expects to channel the funds into reverting the company's estate on Kangaroo Island from forestry to agriculture.
This includes tree and stump removal and biomass disposal, followed by site preparation, fencing and water infrastructure on 18,696 hectares of its forestry land.
The company says that the carrying value of the asset was A$5 million as at the middle of last year.
Safety conditions satisfied
The sale was subject to several conditions, including the completion of necessary port and safety clearance works so the pontoon could be towed.
The company incurred additional costs of approximately A$350,000 to comply with the requirements of the Vietnamese authorities, which required the pontoon to be moved to a new location in order to receive export clearance.
The 167-metre by 40-metre structure was being refurbished at the Dung Quat shipyard in Vietnam.