Historic Aussie farms to be sold in monster $780m deal
About 225,000ha of NSW farmland, including two famous sheep stations near Deniliquin, have been snapped up in a monster sale. See all the details.
One of Australia’s biggest agricultural companies, including two of its historic sheep stations, is set to change hands in the largest rural property transaction in four years.
Australian Food and Agriculture is selling its entire 225,000ha NSW property portfolio which includes the historic sheep stations Wanganella and Boonoke — regarded as the birthplace of the modern Merino sheep.
Foreign investors, the NASDAQ-listed and Cayman Island incorporated Agriculture & Natural Solutions Acquisition Corporation (ANSC), a special purpose acquisition company, has swooped on the massive AFA company.
ANSC, backed by Riverstone Investment Group and Impact Ag Partners— founded by Bert Glover— announced it had agreed to acquire Australian Food and Agriculture for AUD$780 million (about USD$510 million), via a business combination.
Impact Ag Partners, led by chief executive Hugh Killen, has a significant Australian agricultural portfolio which is part of $900 million in assets under management globally.
Upon completion of the deal, the combined company, to be known as Agriculture & Natural Solutions Company Limited (NewCo), is expected to be listed on the New York Stock Exchange or an alternative stock exchange agreed to by the parties.
Proceeds of the deal are expected to be used to purchase AFA from its current shareholders.
AFA formally listed its assets for sale last September via Bell Potter Securities, opening offers on its entire portfolio following the death of one of its founding directors, the late Colin Bell.
At the time 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.
Upon closing of the deal, it is expected the board of NewCo will comprise seven directors including two designated by current AFA shareholders, who roll a portion of their ownership into NewCo, ANSC chairman of the board of directors David Leuschen, Agriculture & Natural Solutions Acquisition Corporation CEO Bert Glover, and three independent directors.
It was estimated AFA could receive offers in the realm of $700 million, or greater.
Agriculture & Natural Solutions Acquisition Corporation chief executive Bert Glover said the investment company assessed more than 100 companies globally before committing to acquire AFA and its assets.
“ANSC’s central thesis is to decarbonise agriculture and enhance natural capital at scale,” Mr Glover said.
“We’ve searched for companies with assets and business models producing food and fibre whose potential we can harness – and expert teams we can work with to enhance it. That’s AFA.
“ANSC has global aspirations, and this iconic portfolio will form part of our broader plan to scale activities – and impact – across other markets.
“We know how significant these properties are, both to the ag sector and the communities which they call home. AFA’s bloodlines and genetics underpin around 95 per cent of Australia’s Merino flock. It’s a huge privilege, and responsibility. And we’re determined to secure their legacy for generations to come.”
Last November ANSC closed its initial public offering with the purpose of completing an initial business combination, targeting agricultural sector companies “that may provide opportunities for attractive risk-adjusted returns and benefits from sustainability objectives”.
It is understood AFA’s 70-person staff will continue to operate, while some staff from regenerative agriculture company, Impact Ag Partners, led by chief executive Hugh Killen, are expected to join the team.
The deal remains subject to the approval of ANSC’s shareholders and approval from Australia’s Foreign Investment Review Board.
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 54,700 megalitres of water licences in the Murrumbidgee and Murray irrigation areas.
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.
In the following decades the stations changed hands several times before FS Falkiner & Sons reunited the Peppin properties and sheep under one ownership in 1958, following the purchase of Wanganella from the Austin family.
Two decades later, News Limited acquired FS Falkiner & Sons as a whole, owning the historic Deniliquin stations until FS Falkiner & Sons was again sold in its entirety in 2000 to AFA.
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 of cattle Conargo Feedlot.
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