Wellard moves ahead with vessel sale

By Aidan Fortune contact

- Last updated on GMT

Wellard moves ahead with vessel sale

Related tags: Beef, Lamb, Livestock

Australian livestock haulier Wellard’s sale of its vessel MS Ocean Swagman is back on course after a choppy period involving another potential customer.

Last month it had announced the sale and leaseback agreement​ with Heytesbury Holding Company for US$22m however following Heytesbury requesting an extension to the completion deadline, Wellard received and accepted a higher bid (US$25.2m) from Trim Shipping, a subsidiary of Nova Marine Holdings from Luxembourg.

This second deal was subject to the approval of the Nova board however this was not received by the 19 August deadline set out, leading Wellard to revert to the original Heytesbury deal.

The ship was classified by the Registro Italiano Navale as a ‘Green Star Vessel’, due to its low emissions and pollution prevention design and systems. When it was launched seen as a step change in livestock vessel design and construction due to its focus on enhanced welfare and safety of livestock, vessel and crew.

Funds from the sale of the MS Ocean Swagman will be used to settle Wellard’s debt. This transaction is expected to reduce Wellard’s debt from US$85m to US$64m as well as improving its cashflow.

Related topics: Meat

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