Cargill arm puts $40m into farming
A HEDGE fund run by an arm of the world's largest agriculture company, Cargill, has injected almost $40 million into a local company which buys Australian rural property.
The fund, Black River Asset Management, has taken a large slice of BFB Group, which recently purchased the prized Billabong Station in the Eurongilly Valley, east of Wagga Wagga, NSW.
The new investment by Black River in BFB Group comes on the back of a rebound in profit for the small, unlisted farming company. According to accounts filed with the corporate regulator, BFB Group made a $5.4 million profit in the year ending December 2010 after a $200,000 loss the year before, The Australian Financial Review reports.
The accounts show the group has more than $83 million in property and infrastructure and collects about $20 million in revenue per year.
The company's purchase of Billabong Station was believed to be worth between $9 million and $10 million.
The Australian Financial ReviewSource: http://www.afr.com