Sale of Ocean Drover to mark end of era for what was once $600m agribusiness

Agribusiness Wellard has flagged selling its last livestock carrier on the same day Anthony Albanese came under fire over the decision to end the live sheep trade.

Australian businessman and wine make Paul Holmes à Court.

Paul Holmes à Court-backed agribusiness Wellard has flagged a deal to sell its last livestock carrier on the same day prime minister Anthony Albanese came under fire in Perth over his government’s decision to end the live sheep trade.

Wellard went into a trading halt on Friday and is poised to unveil a deal to sell the Ocean Drover, the pride of what was once a fleet of sheep and cattle carriers.

Paul Holmes à Court, one of Australia’s biggest cattle producers from a herd of about 165,000 Brahman on stations covering 2.7 million hectares in WA and the Northern Territory, has stuck with Wellard through numerous storms and government policy changes.

His brother Simon is a major player in the turbulent world of politics through his financially support of the Teals and influence on their policies.

The Wellard share price jumped almost 6 per cent to 7.3c before the trading half was imposed.

The Drover is Wellard’s last physical asset and a sale would pave the way for the winding up of a company that has come close to sinking several times in the eight years since Mauro Balzarini listed what was a family business on the ASX at $1.39 a share.

The sale would leave an unresolved claim for compensation over the then Labor government’s decision to ban live cattle exports to Indonesia 14 years ago as Wellard’s only other “asset”.

The Albanese government has been locked in a dispute with farmers and other industry players over how much compensation it should pay after a Federal Court ruling against the Commonwealth in 2020.

In its struggles to stay afloat after ASX listing, Wellard went from a major big player in cattle and sheep exports to offering livestock carriers for charter.

Wellard, once valued at $600m, now was a market capitalisation of $36.6 million.

The sale of the second last vessel in the fleet, the Ocean Ute, last year fetched $US12m ($19.6m). Shareholders will be hoping the Drover attracts a much bigger price given the Ute is 10 years older and less than half the size.

Wellard stock was trading 1.7¢ before the Ute sale was announced last June, but soared when the market realised the transaction would deliver the equivalent of about 3¢ a share in value back to investors.

Paul Holmes à Court’s private company, Heytesbury, came to Wellard’s rescue soon after Mr Balzarini’s exit as chairman and chief executive in 2019. Heytesbury purchased the Ocean Swagman, one of Wellard’s vessels, for $US22 million and leased it back to the company.

Wellard opted to stop chartering the Swagman from Heytesbury, which has a 15.8 per cent stake in the company, early last year.

Perth-headquartered Wellard has not been involved in exporting sheep for several years, but is part of an industry fighting for survival in Australia.

“Keep the Sheep” campaigners gatecrashed a suburban sod-turning event attended by Mr Albanese on Friday, with WA Farmers president John Hassell reportedly shouting: “Do you have the courage to talk to us?”

Farmers are angry over the government’s decision to shut down the WA-based live sheep export industry by mid-2028, and have warned that animal rights campaigners have the cattle trade in their sights.

Originally published as Sale of Ocean Drover to mark end of era for what was once $600m agribusiness