BFC divests assets linked to Ferguson Australia

Beston Global Food Company (BFC) has divested A$7.5m ($5.08m) worth of assets held by seafood company Ferguson Australia to an undisclosed buyer.

Ferguson sells lobster, crab, prawns, tuna and other fish products.

Through this transaction, BFC noted that it has exited its investment, as well as lobster licences and quotas in South Australian Southern Zone and Northern Zone Rock regions, as well as other property leased to Fergusons.

Beston Global Food Company CEO Jonathan Hicks said that the divestiture of licenses and quota has generated a profit of A$2.6m ($1.7m) before tax and will be used by the company to reduce its debt and a portion of it to fund efficiency projects.

Hicks said: “Further to the write-down of the investment in Ferguson Australia, BFC intends to divest its remaining assets associated with its investment in Ferguson Australia.”

Last year, BFC intended to divest its 32% stake in Ferguson and further added that the equity investment in the company has not paid dividends to BFC as expected.

The divestiture is reported to be in line with BFC’s strategy to become a protein company by focusing on producing dairy protein, meat protein and plant-based protein products.

Beston Global Food Company chairman Dr Roger Sexton said: “The company has responded to changing circumstances as we have moved from the first phase of our business growth strategy to the second phase of growth by concentrating its efforts in the areas where the Company can achieve the greatest return on capital employed.

“The divestment of the rock lobster licences and quotas, along with the various restructuring changes put in place in FY19, will assist in facilitating the achievement of this objective.”