Australian Agricultural Company Limited (AAC) announced it has agreed to purchase approximately 53,000 head of branded cattle from the Tipperary Group (TG), which is owned by interests associated with Mr Allan Myers and family. The total consideration of $26.08 million will be paid in two instalments, the final payment upon completion of the first round Bang Tail Muster. As part of the transaction AAco has also entered into a one year agistment agreement to use the stations owned by TG, Tipperary and Litchfield stations, with options to extend, if necessary. The transaction is expected to settle on or about 31 March 2011 subject to the satisfaction of conditions subsequent.
The herd to be acquired includes mixed age, high quality, high grade Brahman cattle, with a mix of cows, heifers, steers and bulls, and with calves given in.
AAco Managing Director/CEO David Farley said the agreement was a compelling commercial opportunity for the Company to continue expanding its herd and northern Australian operations: “This is a substantial cattle purchase for AAco and will allow the Company to take advantage of the good seasonal conditions available, with an expanded total herd of more than 640,000 head before the 2011 calf brandings. “The cattle are located close to Darwin, which is the main shipping point for live cattle exports into South East Asia. A portion of the cattle will also be available to support the planned meat processing facility throughput, which is proposed to be developed within the Darwin region, supporting a key initiative for our global boxed beef business”. able, the price per head is commercially sensible, especially given the current global price of beef, and strengthening national cattle markets, Mr Farley said.
AAco has also recently formed several other agistment agreements to graze cattle on properties across northern Australia, maximising the immediate return on the Company’s working capital, through weight gain and calf production. Australian Agricultural Company Limited (AAC) – is the largest beef cattle company in Australia.
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