PSP Investments completes takeover of Webster Limited, ASX delisting coming soon

Canadian pension fund PSP Investments has completed the takeover of Australia’s fourth oldest rural company, Webster Limited.

Deal finalised: Canadian pension fund PSP Investments has formally taken over the operations of Australia’s fourth oldest business, Webster Limited.

ONE of Australia’s oldest rural companies will be delisted from the Australian Securities Exchange today after it was formally taken over by a Canadian pension fund.

Walnut, cotton, livestock and cropping group Webster Limited was established as a traditional pastoral company in 1831 by Alexander Webster in what was then known as Van Diemen’s Land, now Tasmania.

It is believed to be Australia’s fourth oldest company.

Over time, Webster expanded into a large food and agricultural business operating in a number of states.

Last October, Canada’s Public Sector Pension Investment Board offered $2 a share to buy Webster, valuing the takeover at $724.5 million by market capitalisation.

PSP’s members include Canadian public service workers, Royal Canadian Mounted Police staff and armed forces personnel.

PSP’s offer price was 47 per cent higher than the previous closing price before the bid was lodged and 25 per cent better than the company’s record price.

Webster shareholders approved the takeover on February 3.

The deal involved the Riverina property, Kooba, and other Hay district assets being separated into another holding company where a 50.1 per cent stake would be offered to Webster chairman Chris Corrigan and fellow director David Fitzsimons.

That arrangement has yet to be concluded.

Webster today announced the scheme of arrangement approved by shareholders two weeks ago had been implemented today.

The company is also expected to be delisted from the ASX today.

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Webster managing director Maurice Felizzi said PSP Investments had a proven track record in managing and investing in agricultural assets over the long term for sustainable value creation.

PSP Investments managing director Marc Drouin said the Webster investment was considered to have high quality investments.

“The Webster acquisition is highly complementary to our existing joint ventures with on-the-ground operating partners in Australia,” Mr Drouin said.

“We see this investment as a unique avenue to scale our Australian investments in each of permanent crops, row crops and livestock.”