UPDATE: BEEF producer Australian Agricultural Company (AACo) says it has ended talks with agricultural investor Primary Holdings International.

In December, AAco announced a plan to sell five properties, including cattle stations, to Primary to raise about $250 million.

The companies had planned to establish a cattle management joint venture.

AAco said in a statement today that the companies had decided to end discussions as agreement on the structure and terms of the proposed transaction was unlikely given the complexities of undertaking integrated property, joint venture and cattle management agreements in the current economic climate.

AAco had intended to use the sale proceeds to pay down debt and to implement a capital management program, including a share buyback.

Meanwhile Elders Ltd this morning announced the sale of its remaining 20 per cent interest in AAco through a bookbuild  to a number of domestic and international investors, both institutional and retail.

The AAco chairman, Brett Heading said: “We are very pleased that the lengthy process that Elders has gone through to divest its stake has finally reached a conclusion.

"The fact that the company now has a supportive, long term shareholder base, combined with the recent board changes, allows AAco to focus on its business and its strategic direction."