Australian Food and Agriculture Co (AFA) is set to be sold off following the death of one of its founding directors.
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AFA is a large-scale, diversified agricultural business established by the late Colin Bell in 1993 with the acquisition of the historic Burrabogie station.
The shareholders of AFA have now agreed to offer their shares in the company for sale following the death of Mr Bell.
"AFA has been built over the last 30 years to be a major Australian agribusiness and holds the largest diversified agriculture portfolio in NSW," AFA chairman Alastair Provan said.
"Following Colin's death, the shareholders have made the reluctant decision to sell their shares in the company to enable estate planning and the restructure of the affairs of the major shareholder.
"The sale represents a once in a generation opportunity for a buyer to take custodianship of these iconic and highly productive Australian properties, supported by highly experienced management and staff that have driven the growth of the business."
Since 1993, three marquee aggregations have been formed within the Deniliquin, Hay and Coonamble districts.
Within these aggregations are some of Australia's most iconic properties that have played leading roles in Australian agricultural history, including:
- Boonoke, Wanganella and Peppinella in the Deniliquin aggregation including the world-famous Wanganella and Poll Boonoke Merino studs;
- Burrabogie and Mulberrygong in the Hay aggregation; and
- Wingadee and Netherway in the Coonamble aggregation.
AFA's aggregations total approximately 222,000 hectares (550,000 acres) of land, including:
- 186,500 hectares of native grazing pastures that support one of the largest livestock operations in NSW;
- 23,700 hectares of dryland cultivation, primarily in the Coonamble aggregation; and
- 11,500 hectares of irrigation layouts in Deniliquin and Hay.
To support its operations, AFA owns over 54,000 megalitres of water entitlements from the Murrumbidgee and Murray systems.
AFA has continued to invest in the enhancement and integration of the properties over its stewardship, including most recently the development of the state-of-the art Conargo Feedlot, with a total capacity of 12,000 SCU, strategically situated in the Riverina within the company's Deniliquin aggregation.
Bell Potter Securities Limited is acting as exclusive financial advisor in the sale of the company.
The sales process is expected to commence in the following week and involve the initial submission of indicative offers, followed by negotiations with a shortlist of prospective buyers.
