Ellerston pushes GrainCorp stake to 9.9pc

07 Aug, 2014 10:30 AM
Ellerston is now the second biggest shareholder in the local grain logistics

ELLERSTON Capital has further lifted its already significant stake in GrainCorp to hold almost 10 per cent of Australia's biggest agribusiness.

The former Packer family investment trust began buying back into GrainCorp early this year, 18 months after previously selling out to give US raider Archer Daniels Midland (ADM) its initial foothold in the big agribusiness.

Although its contentious takeover bid was blocked by the federal government last year, ADM now sits on just under 20pc of GrainCorp.

Ellerston, previously the biggest single shareholder before ADM's buying spree, is now the second biggest shareholder in the local grain logistics, marketing and processing giant.

Industry speculation is that the investment company is rebuilding its stake as part of another low-key, long-term plan to eventually offload to ADM again - if the multi-national agribusiness opts to make another takeover move when and if federal government conditions are relaxed.

Ellerston, run by Ashok Jacob, a long time adviser to casino mogul Jamie Packer, his father, the late Kerry Packer and the Pratt family, has confirmed the specialist fund manager now owns 9.9pc.

That's up from 8.7pc reported about a month ago and well above the 6.5pc stake Ellerston held in GrainCorp before the ADM share raid back in October 2012.

The funds management business also held a solid stake in the former AWB Limited and is currently a 13pc shareholder in the Goodman Fielder food business which sold its edible fats and oil assets to GrainCorp in 2012.

The Packer's CPH downgraded its stake in Ellerston in August 2011 to about 25pc after family head and Casino mogul James Packer stood down from its board.

The investment company is now 75pc owned by a trust of Ellerston employees, including chairman and chief investment advisor Ashok Jacob, a long time adviser to Mr Packer and his father, the late Kerry Packer.

GrainCorp's share price has lifted to around $8.70 this week, recovering ground after dipping from highs of $8.86 last month.

Early this year GrainCorp shares were trading as low as $7.60/share.

Andrew Marshall

Andrew Marshall

is the national agribusiness writer for Fairfax Agricultural Media
Date: Newest first | Oldest first


Jock Munro
7/08/2014 11:13:08 AM

Are we growers meant to get excited about this piece of information?! It would have been far better if Graincorp were a grower co op and not a corporate gift horse.
8/08/2014 8:12:25 AM

Far better for corporate laziness no doubt Jock.
8/08/2014 9:34:56 AM

Nothing ever stopped you from buying shares Jock. Smart farmers still own their shares and you don't hear them whinging about their storage and handling costs. They have an effective hedge in place.
8/08/2014 11:35:38 AM

elites looking after elites, who would have thought it.
Jock Munro
8/08/2014 1:19:02 PM

Do you think that their dividends would offset the gouging that they are suffering deregular?! They would be far better off with CBH and you know it but you are a trader anyway it would appear.
11/08/2014 7:20:42 AM

Two issues - Management & Ownership. No matter who owns GC, if it is not well managed, it is costly & inefficient. GC has a history of poor management & infrastructure maintenance & modernization. Allowing NSW, Qld & Vic all to come under same ownership & ,management has not helped & has been anti competitive. This has meant less efficiency & less service at higher costs. Ownership by other than farmers has meant farmers are last in the queue for any improvement in either profit sharing or service. At least farmers in WA own CBH outright, & it is more modern and efficient than privatised GC.


Screen name *
Email address *
Remember me?
Comment *


light grey arrow
Correct Jock. Selling what you don't already have is the biggest con ever introduced to
light grey arrow
When good systems do not deliver, "wheat grower for 53 years", it is caused by either the
light grey arrow
Totally agree "Wheat grower" , growers need to step up and elect a professional board who are