Auscott sells Midkin aggregation at Moree, on market for $300 million

EXCLUSIVE: A high-profile Australian landholder has purchased US cotton giant Auscott’s farming aggregation in northern NSW which was on the market for $300 million.

EXCLUSIVE: A HIGH-PROFILE Australian landholder has purchased US cotton giant Auscott’s northern NSW farming aggregation that was on the market for $300 million.

The Weekly Times understands Australian Food and Fibre — run by former Websters Limited chairman and Cotton Australia vice chairman David Robinson and family — has bought, in a potential joint venture, Auscott’s vertically integrated Midkin business at Moree.

Deal done: Auscott managing director Ashley Power.

Auscott has confirmed Midkin’s sale — which includes 17,300ha of land, 57,600 megalitres of water entitlements and ginning facilities with the capacity to process 200,000 cotton bales a year — but has not named a buyer.

“The sale includes all the properties, the water entitlements and the ginning business at Midkin … and is subject to Foreign Investment Review Board approval,” Auscott said in a statement on its website.

In the statement Auscott managing director Ashley Power said the company had been involved in Midkin for more than 40 years and “having built up the property and operations over such a long time it gives us comfort that Midkin including the ginning business is sold as a going concern with ongoing employment for staff”.

In a statement in July, Mr Power said there had been “intense interest in the purchase of Midkin” in recent years and “after several approaches and much consideration the company has decided to ask for expressions of interest”.

At the time he said if “the expected value is not realised … we will continue to operate the properties and gin going about the business as we have done for years”.

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Mr Power told The Weekly Times today that while the sale price would not be disclosed “we are happy with it”. As for whether the company would reinvest elsewhere he said it was always “looking for opportunities when they come up”.

Auscott purchased Midkin in 1979 and over the past 40 years has expanded it to include the properties South Midkin, Top Box, Cockatoo, Windmill and Watervale.

Auscott operates 11 gins processing in the Gwydir, Namoi, Macquarie and Murrumbidgee valleys.

Australian Food and Fibre was formerly listed on the ASX and was once a major shareholder in Webster Limited.

Last year a joint venture between AFF and Canada’s PSP Investments purchased the 9593ha Bengerang and Darling Farms aggregations in northern NSW from Webster Limited for more than $130 million.

The Weekly Times is seeking comment from AFF.