Wellard sells Swagman for $US25m

Heytesbury has been gazumped by a company from Luxembourg after it struck a deal to purchase Wellard’s M/V Ocean Swagman.

Wellard sold the vessel for $US25.2 million ($A37.2 million) to Nova Marine Holdings, which was $US3.2 million higher than Heytesbury’s bid earlier this month.

On July 4, Wellard announced it signed a transaction term sheet with Heytesbury, its third largest shareholder, but indicated it could scrap the deal if a superior offer arose.

A break fee of $US300,000, or of $US600,000 under special undisclosed circumstances, was part of the term sheet.

Wellard said funds from the sale of the vessel would be used primarily to pay down debt

The Nova transaction remains subject to approval of the Nova board.

In April, Wellard sold its Wongan Hills feed mill, and Baldivis pre-export quarantine lease in Western Australia, as well as its Condah pre-export quarantine facility in Victoria, to Ausvision Rural Services.

The company said $17.5 million in free cash flow would be realised from these combined asset sales to Ausvision.

Shares in Wellard were up 2.6 per cent at 10.10am AEST to trade at 4 cents each.