Joint venture partners GrainCorp and Cargill will sell their Allied Mills venture for $317 million.
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The buyer will be equity firm Pacific Equity Partners (PEP).
GrainCorp will receive $190 million for its 60 per cent share and Cargill will get $127m for its 40pc.
The sale is subject to usual regulatory approvals.
Commenting on the sale, GrainCorp managing director Mark Palmquist said the deal was good value for GrainCorp shareholders.
“This transaction is consistent with our strategy to proactively manage our portfolio to improve returns,” he said.
“The interest shown by PEP to acquire full control of Allied Mills provided us with an excellent opportunity to realise the value in Allied and create balance sheet flexibility for the future.”