M.P. EVANS GROUP PLC ("MPE" OR THE "GROUP")
Purchase of Australian beef-cattle and arable property
MPE is pleased to announce that contracts have been exchanged with regard to the
Group's acquisition of a cattle and arable-farming property, "Baquabah", for a
total consideration of A$5.0 million (approximately £2.0 million). The contract
is due to be completed on 8 December 2006 and the acquisition will be financed
by a combination of cash and loan finance.
Baquabah comprises 4,097 hectares and is contiguous both with the Group's
existing beef-cattle growing properties, Woodlands and Flinton, and with
Springmount, which the Group has also recently contracted to acquire, as
announced on 22 September 2006. All these properties are located some 120
kilometres north west of Goondiwindi in Southern Queensland. Once the
acquisitions of both Baquabah and Springmount have been completed, the enlarged
aggregation (comprising all four properties) will extend to 31,090 hectares.
By 2008, assuming normal seasonal rainfall, it is expected that some 19,000 head
of cattle will be able to be turned off each year from the enlarged aggregation.
The increased area, which will be managed by the present manager of Woodlands
and Flinton, Michael Wright, will permit additional economies of scale to be
achieved.
The enlarged aggregation has recently been valued at A$33.5 million
(approximately £13.4 million) and will be one of the largest of its kind in
Southern Queensland.
By order of the board
J F Elliott
Company secretary
13 November 2006
Enquiries:
M. P. Evans Group PLC 01892 516333
Peter Hadsley-Chaplin Joint Managing Director
Philip Fletcher Joint Managing Director
Hudson Sandler 020 7796 4133
Andrew Hayes
James White
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