Australian livestock company Wellard has agreed to sell its 2009-built livestock carrier Ocean Swagman to Heytesbury Cattle Company for $22m. The sale is part of the company’s plan to restructure, reduce debts, and turn around its poor financial performance.
Specifically, under the agreement Wellard will charter the vessel from Heytesbury until March 2021, with the possibility of extending for another four years.
The vessel sold has a capacity of 7,000 cattle or 26,000 sheep. Moreover, the vessel was constructed for a cost of $40 million in 2010. It’s sale is expected to be official in August.
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Heytesbury bought into Wellard in 2017 and now owns 11.42% interest of the company.
Wellard Executive Chairman, John Klepac, commented that the funds coming from the sale of the vessel will be used to pay down dept.
Heytesbury’s purchase of the Ocean Swagman provides an attractive opportunity for Wellard to realise the equity value in the ship, while retaining continued use of the vessel for chartering or exporting opportunities.
Heytesbury Cattle Company runs around 160,000 head of cattle across the NT and WA.