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Qube Holdings (ASX:QUB) to buy Newcastle Agri Terminal for $90m

Industrial
ASX:QUB      MCAP $5.741B
08 September 2021 14:40 (AEST)

Source: Newcastle Agri Terminal

Qube Holdings (QUB) has entered into a binding agreement to purchase Newcastle Agri Terminal for $90 million.

Newcastle Agri Terminal (NAT) is an independent grain logistics company that is owned by CBH, Viterra Australia, Riverina and CTC Terminals.

Its terminal is positioned to capture export grain from the large northern New South Wales (NSW) draw zone, one of the most unique and productive grain producing regions in the world.

The agreement is subject to a number of conditions but is expected to be completed by September 30.

Notably, the northern NSW region has typically produced an average of around 4.8 million tonnes of grain per annum over the past seven years.

The NAT facility has around 60,000 tonnes of silo storage, modern rail receival infrastructure, road discharge facilities and the ability to load out up to 2000 tonnes per hour.

Qube Holdings Managing Director, Paul Digney said the purchase would further strengthen its agri export service offering to growers and traders.

“The addition of this quality asset to the Qube Agri capability will ensure customers in the Northern draw zone can benefit from an efficient export terminal,” Mr Digney said.

“There are no immediate changes forecast for the business, and the initial focus of the combined business will be to work with the management team to ensure the same high level of service continues for NAT’s valued customers and the new opportunities identified are delivered upon.”

Qube closed up 4.59 per cent at $3.42 per share.

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