A business agreement has been entered into for the planned acquisition of a group of Australian pastoral holdings, previously controlled by the late Colin Bell of Australian Food and Agriculture Company Limited (AFA).
It includes the famed FS Falkiner properties Wanganella and Boonoke.
While the agreement with Agriculture & Natural Solutions Acquisition Corporation (ANSC) is still subject to approvals, all parties have said they do not anticipate any major changes to operations or staffing at any of the properties.
The acquisition will be made by a special purpose fund co-created by ANSC CEO Bert Glover, founder of Armidale-based Impact Ag Partners.
The deal includes stations covering 225,000 hectares in the Deniliquin, Hay, and Coonamble districts.
It also includes more than 55,000 megalitres of water entitlements, providing security and risk mitigation in drier years.
The historic sale of the AFA properties was launched in September last year, which AFA chair Alastair Provan said was triggered by the earlier death of Mr Bell.
“We have built the AFA business over 30 years through the combination of three major Australian farmland aggregations,” he said.
“We have undertaken the sale reluctantly following the death of our founding director Colin Bell, to enable estate planning and the restructure of our shareholders’ affairs.
“We are pleased to enter into this agreement to pass the business to ANSC who intends to continue to operate it with our existing staff as a major diversified agricultural enterprise.”
ANSC, a NASDAQ listed company, completed an initial public offering in November 2023 with the purpose of completing an initial business combination with companies in the agriculture sector that may provide opportunities for attractive risk-adjusted returns and benefits from sustainability objectives.
AFA is expected to continue to operate as a large-scale, diversified agricultural business across its three freehold title land aggregations including its livestock, irrigated cropping, dryland cropping, merino stud and feedlot operations.
AFA’s experienced management and support staff team, of about 70 people, will continue to run the business together with certain individuals from Impact Ag Partners LLC - a leading regenerative agriculture company and a co-sponsor of ANSC.
ANSC intends, through the Business Combination and any subsequent acquisitions the combined company may make after closing of the Business Combination, to create an attractive agricultural decarbonisation and premium product company.
"ANSC’s central thesis is to decarbonise agriculture and enhance natural capital at scale,“ Mr Glover said.
“We’ve searched for companies with assets and business models producing food and fibre whose potential we can harness - and expert teams we can work with to enhance it. That’s AFA."
"ANSC has global aspirations, and this iconic portfolio will form part of our broader plan to scale activities - and impact - across other markets.
"We know how significant these properties are, both to the ag sector and the communities which they call home.
“AFA’s bloodlines and genetics underpin around 95 per cent of Australia’s Merino flock.
“It’s a huge privilege, and responsibility, and we’re determined to secure their legacy for generations to come."
The sale remains subject to approval of ANSC’s shareholders and the satisfaction or waiver of other closing conditions such as regulatory approvals.
This includes the Foreign Investment Review Board and the Federal Government.
Deniliquin aggregation properties included in the sale are Boonoke, Wanganella, Peppinella, Barratta, Zara and Warriston.
The Hay aggregation includes Burrabogie, Mulberrygong, Kolora, North Cobran and Wahwoon, and the Coonamble properties are Wingadee and Netherway.
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