Wellard Limited to sell largest livestock ship in the world
WA-based livestock shipping operator Wellard Limited is selling its last remaining vessel to a Marshall Islands company.
WA-based livestock shipping operator Wellard Limited is selling its last remaining vessel to a Marshall Islands company for $US50m ($81.2m).
Wellard has signed a binding contract to sell the M/V Ocean Drover, the largest purpose-built livestock export ship in the world, to Meteors Shipping SA, a Marshall Islands company controlled by significant Turkish agribusiness GöktaÅŸlar Et-Et Ürünleri Yan Sanayi ve Ticaret Limited Åžirketi.
The proposed sale would mark Wellard’s exit of the global live export industry after a 46-year involvement.
“The M/V Ocean Drover has been the flagship of the Wellard fleet in terms of profitability and capacity, and I have no doubt it will be a fantastic asset for its new owners,” Wellard executive chairman John Klepec said.
“Throughout its history, Wellard has set a quality benchmark for global livestock trading and logistics, has been a major force in driving and maintaining the highest standards that the public expects of a modern agribusiness, and has helped feed the world, linking livestock producers with consumers.”
Since 2017, Wellard has seen their fleet decrease from five to one, most recently selling the MV Ocean Ute for USD$12m ($18.1m AUD) to another Marshall Islands registered company, Bassem Dabbah Shipping Inc in July last year.
As the sole remaining asset in the Wellard fleet, the sale requires shareholder approval to become final and binding, with all of the net sales proceeds of the Ocean Drover to be returned to shareholders.
Pending necessary approvals and sale completion, the only remaining potential income for Wellard could come from any compensation from the resolution of the Brett Cattle Company Class Action, of which Wellard is a class member.
Following the approved sale the Wellard Board will consider the future of the business, including the possibility of delisting from the ASX and continuing as a public unlisted company.
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