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- Wellard has announced it will continue to proceed with the sale of M/V Ocean Swagman to Heytesbury Holding Company for US$22 million
- Nova has pulled out of the deal for Ocean Swagman after its subsidiary didn’t get Board approval
- For the transaction to proceed further, Heytesbury will need shareholder approval and bank consent
Wellard has announced it will continue to proceed with the sale of M/V Ocean Swagman to Heytesbury Holding Company for US$22 million.
The transaction also includes a bareboat charter from Heytesbury to Wellard. The transaction is expected to be completed by September 30.
Wellard was initially unsure about the sale of the ship due to Heytesbury not completing the due diligence by the agreed deadline.
Nova Marine Carriers SA was originally going to purchase the Ocean Swagman for US$25.2 million but Nova’s subsidiary, Trim Shipping SA, did not get Board approval by the deadline.
Heytesbury is one of North Australia’s leading producers of quality export cattle and has been supplying beef to Asian markets for over thirty years.
The Ocean Swagman is a livestock vessel that has the capacity to transport 7000 cattle or 26,000 sheep.
It has been classified by the Registro Italiano Navale as a green star vessel due to its low emissions and pollution prevention design and systems.
The ship has an average of 110 air changes per hour, which is four times the Australian standard and 3.5 times the number of air changes per hour on a commercial airliner.
Heytesbury has achieved confirmation on the finance, due diligence, and vessel inspection. It is also a 11.42 per cent shareholder of Wellard and is therefore a related party.
For the transaction to proceed further, Heytesbury will need shareholder approval, bank consent and has to meet Singapore’s guidelines.
