$780m sale of historic Riverina farms falls over

The sale of 225,000ha of NSW farmland, including the famous Boonoke and Wanganella stations, to foreign owners has collapsed. See the details.

Pictured: The Burrabogie homestead, part of the Hay aggregation of the Australian Food and Agriculture company.

The monster $780m sale of one of Australia’s biggest agricultural companies, including two of its historic sheep stations, has collapsed seven months after it was announced.

Foreign investors, the NASDAQ-listed and Cayman Island incorporated Agriculture & Natural Solutions Acquisition Corporation, a special purpose acquisition company, have announced their purchase of the mighty 225,000ha Australian Food and Agriculture company has been terminated.

In August last year it was revealed ANSC, backed by Riverstone Investment Group and Impact Ag Partners agreed to acquire Australian Food and Agriculture for AUD$780m (about USD$510m), via a business combination.

In December last year the huge transaction received approval from the Australian FIRB.

However in a SEC filing to the NASDAQ in the early hours of Saturday morning (Australian time), ANSC confirmed the business combination had been terminated on April 10.

In an earlier filing to the SEC on March 28, ANSC said: “The parties (AFA and ANSC) are currently discussing the best path forward for the business combination in light of the increasingly volatile equity market conditions, including potentially mutually terminating the Business Combination Agreement”.

Upon completion of the sale, the new combined company was to be called Agriculture & Natural Solutions Company Limited (NewCo), and expected to be listed on the New York Stock Exchange or an alternative stock exchange agreed to by the parties. This had not yet occurred.

Across the AFA portfolio there are 22,000ha of dryland cropping and 11,000ha of irrigated rice, cotton and wheat cropping.

AFA formally listed its assets for sale in September 2023 via Bell Potter Securities, opening offers on its entire portfolio following the death of one of its founding directors, the late Colin Bell.

The Weekly Times understands the expansive AFA portfolio will be taken back to market in the near future.

The late Colin Bell with a sample of Wanganella wool. Picture: File

AFA’s shareholders, stockbroking brothers Andrew and Lewis Bell from the ASX-listed Bell Financial Group, Bell Financial Group managing director Alastair Provan and US billionaire hedge fund manager Ray Dalio, announced they were offering their shares for sale to enable Colin Bell’s estate planning.

In 1993 Colin Bell established AFA following the purchase of the historic Burrabogie station.

Since then the consortium established three marquee aggregations comprising 18 farms near Deniliquin, Hay and Coonamble and almost 54,700ML of water licences in the Murrumbidgee and Murray irrigation areas.

About 100,000 Merino wool sheep, 15,000 cattle and more than 14,000 stud sheep are carried across the AFA portfolio.

The Wanganella Station and Boonoke legacy dates back to the 1860s when George Peppin and his sons decided to breed the modern Merino.

The Deniliquin portion of the portfolio comprises about 123,000ha including landmark stations Wanganella and Boonoke as well as the Baratta, Peppinella, Warriston and Zara properties, alongside the world renowned Wanganella and Poll Boonoke Merino studs.

The Wanganella Station and Boonoke legacy dates back to the 1860s when George Peppin and his sons established a stud flock at Wanganella Station, then in 1873 the Peppin Brothers purchased Boonoke to form the now famed pastoral run.

As part of its portfolio AFA also owned about 57,600ha near Hay including the Burrabogie, Kolora and Mulberry properties.

The Coonamble group of farms, about 160km north of Dubbo, span 44,800ha including Wingadee and Netherby stations.

The company also owned the 12,000-head Conargo Feedlot.