M. P. EVANS GROUP PLC ("MPE" or `'the Group''))
Purchase of Australian beef-cattle property
The MPE board is pleased to announce that contracts have been exchanged with
regard to the Group's acquisition of Flinton Station ("Flinton") for a total of
A$7.5 million (approximately £3.2 million at the current rate of exchange), with
settlement scheduled for 31 March 2006. The acquisition will be financed by way
of debt.
Flinton comprises 7,012 hectares and is contiguous with the Group's existing
beef-cattle "growing'' property, Woodlands, which is some 120 kilometres north
west of Goondiwindi in Southern Queensland. It will be run in conjunction with
Woodlands, with the cattle being fed on a combination of grass and forage crops.
The aggregation will comprise 19,412 hectares.
Pasture and arable improvements on Flinton have, by and large, been completed
and minor improvements to the infrastructure will be required. The pasture
improvements on Woodlands too have been completed, but only more recently, and
will not be fully mature for another one to two years, depending upon the
weather. By that time, it is expected that a minimum of 10,000 head of cattle
will be able to be turned off each year from the aggregation. The increased
area, which will be managed by the present manager of Woodlands, Michael Wright,
will permit additional economies of scale to be achieved.
The aggregation has recently been valued at A$17.0 million (approximately £7.2
million at the current rate of exchange) and it is likely that this value will
increase as the benefits are received from the recent pasture improvements
referred to above .
The Group's other investment in Australia comprises its 27.92% interest in The
North Australian Pastoral Company which owns close to 200,000 head of beef
cattle. This shareholding has been acquired over the past eighteen months at a
cost of A$34.0 million (approximately £14.5 million).
Peter Hadsley-Chaplin, Joint Managing Director, said, "This acquisition is an
excellent extension of Woodlands and represents a further step in our strategy
of developing our Australian beef-cattle interests alongside our investment in
Indonesian oil-palm plantations."
Enquiries:
M.P Evans Group PLC 01892 516333
Peter Hadsley-Chaplin, Joint Managing Director
Hudson Sandler 020 7796 4133
Andrew Hayes
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