This article is from the Australian Property Journal archive
THE Queensland Investment Corporation (QIC) has made a $400 million play for an 80% stake in the North Australian Pastoral Company (NAPCo).
The deal will involve QIC taking all of the UK-listed MP Evans Group’s shares in NAPCO, as well as 60% of the shares owned by the Foster family, who will retain 20% ownership of NAPCo.
NAPCO was founded in 1877 and is on the country’s largest privately owned cattle companies, managing 5.8 million hectares over 13 properties throughout Queensland and the Northern Territory.
The portfolio includes Australia’s second largest cattle station, the 16,000 square-kilometre Alexandria Station in the Northern Territory, which comprises 55,000 head of cattle.
MP Evans has cashed in its 34.37% stake at $A18.50 per share, after buying into the company at $A8.44 per share some 11 years ago. This will result in a total gross consideration to MP Evans of approximately US$79 million at the current rate of exchange.
MP Evans chairman Peter Hadsley-Chaplin said the decision to sell the group’s share of NAPCo represents an important transition for the Group.
“NAPCo is an excellent company, with first-class management and staff, and has provided significant capital growth in the last decade or more. However, the group’s focus has increasingly been on Indonesian palm oil, which has consistently delivered profitable growth, and proceeds from the sale will enable the group to achieve greater economies of scale,” Hadsley-Chaplin said.
QIC has more than $78 billion in funds under management in a global portfolio comprising infrastructure, real estate and private equity components, making it one of Australia’s largest institutional investors.
The deal follows Treasurer Scott Morrison blocking of Chinese group Dakang Australia’s $370 million offer for the S Kidman and Co portfolio.
Australian Property Journal
