Big beef industry business, Consolidated Pastoral Company (CPC), appears likely to be back on the market, according to financial sector speculation.
UK private equity firm, Terra Firma, which bought CPC in 2009, is reported to be preparing to sell its $1 billion northern Australian and Indonesian cattle operations which span 16 properties over 5.5 million hectares.
Property agency Knight Frank and investment banking giant Goldman Sachs are believed to be handling the sale in a two stage auction process.
CPC, with an asset base worth about $880.5m, including about 400,000 head, is Australia’s largest privately-owned cattle enterprise.
It also has an 80 per cent stake in two feedlots in Indonesia, in South and North Sumatera, with capacity to handle about 36,000 cattle
Last year CPC exported about 25,500 live cattle to Indonesia.
The Australian Financial Review has reported the cattle company is expected to be pitched to local and offshore superannuation funds, industry and strategic players.
Interested parties have apparently been told confidential sale documents will be released in February, and first round bids will be due in April.
CPC reported almost $50m in earnings before interest, tax, depreciation and amortisation last financial year.
A recent marketing roadshow highlighted by Terra Firma’s nine-year ownership of the CPC business and its preparedness to consider strategic options given the current strong demand for high quality pastoral assets and proximity to growing markets in Asia.
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