Livestock shipping company Wellard is considering its future after striking a deal to sell its only remaining revenue-generating asset, the Ocean Drover, for $81 million.
The 176-metre-long vessel is capable of carrying 20,000 cattle or 75,000 sheep and was described by Wellard as “the world’s second-largest purpose-built livestock carrier”.
It will be sold to a Turkish agribusiness, pending the approval of Wellard’s shareholders, with an expected sale completion in July.
Wellard said the profits from the sale of the Ocean Drover plus any surplus cash on hand at the sale’s completion would be returned to shareholders.
“We believe that this sale represents the highest possible value that can be realised for shareholders from the Ocean Drover in the current market,” Wellard executive chairman John Klepec said.
“The Ocean Drover has been the flagship of the Wellard fleet in terms of profitability and capacity, and I have no doubt it will be a fantastic asset for its new owners.
“Subject to shareholder approval, the sale of the Ocean Drover will bring to an end Wellard’s 46-year involvement in the global live export industry.”
The Ocean Drover can carry more than 20,000 head of cattle or 75,000 sheep. (ABC Rural: Lydia Burton)
Wellard only regained full control over the Ocean Drover in September 2024, resolving a dispute over its ownership after paying the liquidators of its previous registered owner just over $8 million [US$5 million].
Wellard to consider delisting from stock exchange
With the pending sale of the Ocean Drover, Wellard said its only remaining existing potential income was the possible future compensation from the Brett Cattle Company class action.
“Wellard’s board will consider the best structure for the business, including the possibility of delisting from the ASX, and continuing as a public unlisted company,” Wellard said in a statement.
“Any such change to the company’s structure would require engagement with the regulator and shareholder approval.”
Wellard was once Australia’s largest and one of its oldest live export businesses, starting local operations in 1980 and listing on the ASX in 2015 for $556 million.
Wellard sold the Ocean Outback in 2017 for US$26 million then, in 2018, the company announced it would move away from trading livestock to focus on chartering vessels.
Wellard sold the Ocean Swagman for US$22 million in 2019, the Ocean Shearer for US$53 million in 2020, and the Ocean Ute for $US12 million in 2024.
