NANGILOC Colignan Farms is at the centre of a $46 million acquisition by a Hong Kong-listed company.
In a legal announcement filed to the stock exchange on Friday, CK Life Sciences said a wholly owned subsidiary had agreed to buy the farm property of Nangiloc Colignan Farms and a NSW water access licence.
The deal, which the announcement said was for $46 million, featured 697.44 hectares and included land, water rights and improvements but excluded unpicked crops.
Settlement was subject to the simultaneous settlement of transaction documents.
Based at Colignan, Nangiloc Colignan Farms grows, packs and transports table grapes and citrus for export and domestic markets.
CK Life Sciences is a holding company with interests in nutraceutical, pharmaceutical and agriculture businesses.
In Australia, its activities include ownership of a number of vineyards, salt producer and refiner Cheetham and home garden and horticulture product supplier Amgrow.
As part of the legal announcement, reasons outlined for the purchase by CK Life Sciences included expanding the company’s geographical coverage.
“The acquisition is expected to be earnings-accretive for the group and represents a strategic acquisition of a large-scale vineyard and citrus property with recurring cashflow,” the announcement said.
“The acquisition will enable the group to expand the geographical coverage and tenant base of its agriculture-related business.”
CK Life Sciences has a market capitalisation of more than A$900 million and claims to be the second largest vineyard owner in Australasia.
The larger CK Hutchison Holdings conglomerate, one of the biggest companies on the Hong Kong stock exchange, owns 45 per cent of CK Life Sciences.
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