British investor Guy Hands is leading a consortium for a management buyout of Australia's biggest private cattle company.
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Sale plans for the major pastoral business Consolidated Pastoral Company were first revealed last year.
Today it has been revealed CPC's owners, led by Mr Hands, are working with CPC's management for a buyout.
UK private equity firm, Terra Firma, which bought CPC in 2009, has been selling its northern Australian and Indonesian cattle operations which span 16 properties over 5.5 million hectares.
Private equity firm Terra Firma was founded by Mr Hands.
CPC owns, and has owned , a number of big cattle stations in the Katherine region including Dungowan (445,000ha), Manbulloo (379,000ha) and Auvergne (414,000ha).
Other NT stations include Newcastle Waters, Kirkimbie, Bunda, Argyle Downs, Newry and Carlton Hill stations.
CPC sold Manbulloo Station just outside Katherine on the Victoria Highway earlier this year and then immediately leased back the property to continue its enormous beef operations, chiefly as a supplier of cattle to Asian markets.
Mr Hands is reported to have spent $600m for a cornerstone stake in CPC.
CPC today confirmed a consortium led by Mr Hands and his family along with the management of CPC are progressing a proposal to acquire the company.
The Hands family will provide a cornerstone commitment and invest alongside CPC management.
Other investors will be invited to participate in the buyout.
The Hands family believes CPC provides a unique and compelling generational wealth creation opportunity through exposure to Australian agriculture.
They are delighted to be partnering with the management team of CPC to invest in the business having worked together for many years.
CPC is the largest private cattle company in Australia, with 3.2 million hectares of land and a carrying capacity of circa 300,000 head of cattle as well as vertical integration into two feedlots in Indonesia.
Commenting on the announcement, Guy Hands said: "CPC is a high quality, well run business with a strong position in a large and growing industry. Its operations are close to major beef-consuming markets. I am personally very excited about the future of CPC and delighted to be partnering with the management team of CPC."
Troy Setter, chief executive of CPC, said: "This is a great outcome for CPC. Long-term, patient capital will enable us to continue to invest in our people, our land and our cattle which will not only benefit CPC but the broader agricultural industry in Australia. I look forward to continuing to work with the Hands family, our team and our local communities to build on the great business we have today well into the future."
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