AAC +1.16%: The owner of nearly 400,000 head of cattle and about 1% of Australia’s land mass appointed a new CEO today from within, promoting Chief Operating Officer David Harris. It would be a tough gig given UK based Billionaire Joe Lewis owns a tad over 50% of the company (via an investment vehicle called Tavistock) while Andrew Forrest’s Tatterang owns 17.4%. There was optimism that one...
We looked at AAC last Wednesday and the world’s largest beef producer has cordially slipped into our buy zone, Twiggy Forrest recently acquired a large parcel ~15% above yesterday’s close, if he’s considering taking his 17.4% stake much higher he will need to make a full takeover offer. This would be an ideal play for MM if we see the ASX200 pop towards 6850 although last night’s higher-than-expected CPI print may make this an optimistic scenario for stocks in the short term.
Australian Agricultural Company Limited is an Australia-based integrated cattle and beef producer. The Company specializes in grain fed beef and Wagyu beef production. It is also engaged in production of beef, including breeding, backgrounding, and feed lotting. The Company owns and operates properties, feedlots and farms comprising around 6.4 million hectares of land in Queensland and the Northern Territory. It operates a cattle production system across 19 owned cattle stations, three leased stations, approximately three agisted properties, over two owned feedlots, and approximately two owned farms. The Company’s brands include Wylarah, Westholme, and Darling Downs. Australian Wholesale Meats are the domestic distributors for Company’s portfolio of brands. The Company's subsidiaries include A. A. Company Pty Ltd, Austcattle Holdings Pty Ltd, A. A. & P. Joint Holdings Pty Ltd, Shillong Pty Ltd, James McLeish Estates Pty Limited, and Naroo Pastoral Company Pty Limited.
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