Live Export

Drover sale marks end of 46-year era for Wellard Rural Exports

James Nason 14/01/2025

THE sale of its final vessel has marked the end of an almost 50-year journey in the global livestock export trade for Wellard Limited.

The publicly-listed livestock vessel owner and charterer today announced the sale of the M/V Ocean Drover for US$50 million (AUD $81 million) to a major Turkish agribusiness company.

The Drover was the final vessel in the Wellard fleet, which until as recently as 2017 boasted five substantial vessels, including the two largest purpose-built livestock carriers in the world – the Drover and the M/V Ocean Shearer.

Livestock exporting powerhouse

At its peak Wellard was a livestock exporting powerhouse with vast ships capable of carrying up to 20,000 cattle or 75,000 sheep in a single lift. Wellard ships exported almost 300,000 cattle per year in both 2014 and 2015.

However an ill-fated public listing in 2015, challenging trade dynamics and rising debts led to the sale of two vessels in 2017 and 2019.

The Wellard Board announced a strategic decision in 2020 to transition the company from a full livestock exporting business to a charterer of vessels to other livestock exporting operations.

Further ship sales followed in 2020 and then 2024, with the announced sale of the Drover today representing the final sell-down of the once major Wellard fleet.

Wellard vessel sale timeline

1 June 2017 Wellard Ltd announces sale of the MV Ocean Outback for US$26 million
25 October 2019 Wellard Ltd shareholders vote to approve sale and lease back of MV Ocean Swagman to Heytesbury for US$22 million
26 March 2020 Wellard completes sale of the MV Ocean Shearer for US$53.0 million to Livestock Transport & Trading Co KSC, Kuwait
1 July 2024 Wellard announces deal to sell MV Ocean Ute for US$12.0 million and return of net proceeds to shareholders
14 Jan 2025 Wellard signs binding contract to sell its remaining livestock vessel, the M/V Ocean Drover for US$50.0 million in cash to Meteors Shipping SA

Wellard has announced that the proceeds from the sale of the Drover plus additional surplus cash in the company will be returned to shareholders, pending a vote by shareholders to approve the capital return at a yet-to-be scheduled meeting expected in coming months.

John Klepec

“The sale of the vessel represents the sale of the main undertaking of the Wellard business, and therefore requires shareholder approval to become final and binding,” chair John Klepec said in a Wellard statement released to the ASX today.

“If the sale is approved by shareholders, the Wellard Board intends to return all of the net sales proceeds of the M/V Ocean Drover to shareholders (approx. A$ 15 cents per share) plus an additional capital return of any surplus cash on hand as at the date of completion.

“There will be costs associated with shutting Wellard’s ship operations division and infrastructure and the need to fund some continuing costs.

“Timing and details of the shareholder meeting and the capital return will be announced shortly.”

End of 46-year live export journey

Mr Klepec said the sale of the M/V Ocean Drover, subject to shareholder approval, will bring to an end Wellard’s 46-year involvement in the global live export industry.

“Throughout its history, Wellard has set a quality benchmark for global livestock trading and logistics, has been a major force in driving and maintaining the highest standards that the public expects of a modern agri-business, and has helped feed the world, linking livestock producers with consumers.

“I thank our many local and international customers and other stakeholders, particularly current and former staff and service providers, who have been supportive of Wellard’s business throughout its journey.”

The only remaining existing potential income for Wellard is the possible future compensation from the Brett Cattle Company Class Action, in which Wellard is a class member.

The sale marks the end of Wellard’s direct involvement in the livestock export trade but the company may still continue as a commercial entity pending regulator and shareholder approval, the statement indicated.

“Given the sale of the Drover, which represents Wellard’s sole remaining revenue-generating asset, and the costs of remaining a publicly listed entity, 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.

“Any such change to the Company’s structure would require engagement with the regulator and shareholder approval. Details of the Board’s review, capital return, shareholder meeting timing and approvals process will be announced in due course.”

Wellard shares were trading at 6 cents per share last week but jumped to 14c per share today following the announcement of the Drover sale and planned capital return to shareholders.

Wellard flagship

The M/V Ocean Drover was a flagship of the Wellard fleet.

It was launched in 2002 as the M/V Becrux and renamed the M/V Ocean Drover in 2009.

Mauro at the helm of the Ocean Shearer (now the Al Kuwait) at its launch in China in 2016.

It was the world’s largest, purpose-built livestock carrier, with advanced ventilation, feed and water systems, and completed its 200th voyage in 2022, by which time it had completed 93 circumnavigations of the globe.

At the time former Wellard CEO and marine architect Mauro Balzarini reflected on the genesis and risks involved in launching what was the world’s largest purpose-built livestock vessel.

Exporter Scot Braithwaite also recalled the huge impact the M/V Ocean Drover had when it became the first mega livestock carrier to enter Australia’s cattle export trade in the mid 2000s.

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