QIC beefs up its agri-investments with stake in North Australian Pastoral Company

ONE of the nation’s oldest and largest cattle operations, North Australian Pastoral Company, will remain under Australian control.

Asia is expected to account for 47 per cent of global beef demand by 2024.

ONE of the nation’s oldest and largest cattle operations, North Australian Pastoral Company (NAPCo), will remain under Australian control with the Queensland Investment Corporation buying an 80 per cent stake in the company.

But the fortunes of the 139-year-old company will still be tied to Asia with the region expected to account for 47 per cent of global beef demand by 2024.

It is QIC’s first major purchase since announcing its agribusiness strategy and intention to grow the beef industry “to meet new Asian demand” late last year.

QIC chief executive Damien Frawley said the State Government-owned corporation aimed to build the NAPCo business over the long term rather than run it as a passive investment.

“What we bring to the table is our relationships and our ability to develop the business, with capital, but also with contacts throughout Asia on the institutional side,” he said.

NAPCo was founded in 1877 and is a vertically integrated beef business. Its 13 properties cover 5.8 million hectares across Queensland and the Northern Territory and hold about 178,000 head of cattle.

It owns the Wainui Feedlot 60km west of Toowoomba and is an industry leader in advanced composite breeding programs.

The deal is believed to be worth $US230 million ($A312 million).

Mr Frawley said he was happy with the price.

Once the purchase is complete NAPCo largest shareholder, the Tasmania-based Foster family, will retain a 20 per cent interest in the company. Funds advised by QIC including Australian superannuation capital and the UK-based Pension Protection Fund will hold the rest having acquired the remainder of the Foster family’s holding and the 34 per cent of NAPCo owned by UK-listed MP Evans. MP Evans announced to the London Stock Exchange on Friday night that it had sold its stake to QIC for $US79 million.

An offer will be made to other minority shareholders to acquire their shares as part of the transaction, and offer them the opportunity, should they wish, to retain an interest in NAPCo.

A Foster family representative said: “QIC is a logical owner of (NAPCo), bringing with it exciting prospects for the future growth of the business.

“We feel assured that (NAPCo) has a bright future, as evidenced by the family’s ongoing investment.”

Mr Frawley declined to comment on the Federal Government’s recent decision to block Chinese consortium Dakang’s $370 million offer for Australia’s largest landholder, S. Kidman & Co.

Queensland Treasurer Curtis Pitt said the investment demonstrated a vote of confidence in the state.

“Agriculture is a critical part of the Queensland economy and there’s the potential for it to grow significantly to meet rising Asian demand,” he said. “Today’s announcement unlocks the investment needed to grow this business and create more jobs in rural Queensland.”