Chris Corrigan
Canadian pension giant backs Corrigan’s Webster
by Ben Wilmot
Legendary waterfront warrior Chris Corrigan could soon have one of the world’s top investors — Canada’s Public Sector Pension Investment Board — as the main shareholder in his listed agricultural company, Webster Limited.
After a long career in finance, reforming the ports and, most recently, at the helm of logistics giant Qube, Mr Corrigan is now executive chairman at Webster, and bringing the pension fund on board could help transform the company.
A deal is being hatched between the Canadian group, which two years ago unveiled a groundbreaking partnership with Queensland’s Hewitt Cattle Co to invest at least $250m in local agriculture, and another major shareholder, private agricultural group Australian Food & Fibre.
Under the deal, AFF, headed by industry veteran David Robinson, would contribute its 14.9 per cent holding in Webster into a joint venture with PSP.
AFF is well known as a farm operator and is also the top tenant of US financial services giant TIAA’s Westchester in Australia. It grows and markets cotton and farm products, including wheat, barley, sorghum, sunflower, canola, citrus and mangoes.
The Moree-based company was earlier this year linked to the purchase of cotton farming property Koramba near Goondiwindi, Queensland, in a deal worth more than $100m.
The Canadian fund and AFF have struck a non-disposal agreement while the terms are thrashed out.
They told the Australian Securities Exchange they were in “in discussions regarding the establishment of a joint venture investment platform in Australia to invest in certain agricultural asset operations focused on cotton growing and other agricultural and farming products”.
Webster is already expanding and last week provided preliminary guidance on expected yields on its growing walnut and cotton operations.
Bell Potter analyst Jonathan Snape said the prospect of a reasonable level of water allocations in the next financial year, stronger cotton prices and a stabilisation in walnut prices were reasons to be optimistic about the company.
“A reasonable near-term outlook should be complemented by asset development over the next five years that should see Webster significantly lift the productive capacity of its cotton assets,” he said.
Webster in February turned in a $4.1m interim profit and flagged plans to expand its cropping, sheep and cotton operations. A month later it bought a 250ha walnut farm in Tabbita, NSW, for $23.1m.
Mr Corrigan has promoted the company’s strategy of leveraging the value of its $300m water entitlements by maximising the value of its horticultural and agricultural operations.
PSP is fast emerging as a major player in Australian agriculture.
The PSP cattle joint venture — run with Mick Hewitt and his family — has spent up on Queensland and Northern Territory cattle stations as beef prices soar.
PSP also took a stake in Queensland-based nut processor Stahmann Farms Enterprises this month.
