CANADIAN investors' obsession with Australian agriculture continues with agribusiness Webster Limited the latest to attract an offer from Canadian buyers.
Fund manager PSP Investments, a public service pension fund, has put in an offer for Webster that values the diversified agribusiness at $854 million.
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It has sent shares in Webster Limited soaring, up 66 cents, or 51 per cent, to $1.93.
The takeover proposal comes about a month after Ruralco shareholders overwhelmingly voted in favour of a $469 million takeover by Canadian fertiliser giant Nutrien - which already owns the Landmark brand in Australia.
Canadian pension funds, such as the Ontario Teachers Fund, have also been active buyers of Australian farmland in recent years.
Webster has encountered controversy around its cotton operations following reports that received money from a government water infrastructure scheme that allowed it to expand its irrigation capacity.
Along with its cotton business it also operates almond and walnut operations in NSW and Tasmania , a broadacre cropping enterprise and a livestock business.
A portfolio of water entitlements is also an important part of the business.
Webster, which has significant holdings in far western NSW, has been hit hard by the ongoing drought, with net profit dropping 46pc to $2.1 million in its half year results earlier in the year.
For its part, PSP Investments has been drawn to Websters, which it describes as a 'high class asset'.
Marc Drouin, PSP Investments managing director said Webster was complementary to the company's existing business, which has over 57pc of its agricultural and timber investments in Australasia.
"The Webster acquisition is highly complementary to our existing joint ventures with on-the-ground operating partners in Australia," Mr Drouin said.
"We see this investment as a unique avenue to scale our Australian investments in each of permanent crops, row crops and livestock."
Gregor Heard
Gregor Heard is Fairfax Ag Media's national grains industry reporter, based in Horsham, Victoria. He has a wealth of knowledge surrounding the cropping sector through his ten years in the role. Prior to that he was with the Fairfax network as a reporter with Stock & Land. Some of the major issues he has reported on during his time with the company include the deregulation of the export wheat market, the introduction of genetically modified crops and the fight to protect growers better from grain trader insolvencies. Still involved with the family farm he is passionate about rural Australia and its people and hopes to use his role to act as an advocate for those involved in the grain sector. Away from work, he is a keen traveller, having spent his long service leave last year in Spain learning the language.
Gregor Heard is Fairfax Ag Media's national grains industry reporter, based in Horsham, Victoria. He has a wealth of knowledge surrounding the cropping sector through his ten years in the role. Prior to that he was with the Fairfax network as a reporter with Stock & Land. Some of the major issues he has reported on during his time with the company include the deregulation of the export wheat market, the introduction of genetically modified crops and the fight to protect growers better from grain trader insolvencies. Still involved with the family farm he is passionate about rural Australia and its people and hopes to use his role to act as an advocate for those involved in the grain sector. Away from work, he is a keen traveller, having spent his long service leave last year in Spain learning the language.
