The future of publicly-listed Wellard Limited, once Australia’s largest livestock exporting company, will be decided by a strategic review, the company announced today.

The company transitioned from a livestock exporter to an owner and charterer of livestock vessels in 2020.

It has also gradually sold down its fleet of mid-to-large size livestock ships from five in 2017 to one now, following the sale of the M/V Ocean Ute in July.

The final vessel it owns, the M/V Ocean Drover, has been at the centre of an ownership dispute since last year.

However, Wellard announced today that an agreement has been reached to secure its full and unencumbered ownership of the Drover from October 14.

The agreement will require Wellard to pay US$5 million (A$7.3m) to KPMG Singapore, the liquidators of Ruchira Ships Limited.

According to Wellard’s statement to the ASX, Ruchira is the registered owner of the Drover who defaulted on the reconveyance of unencumbered title to Wellard originally due to take place on 30 June 2023.

Wellard Executive Chairman John Klepec said the Wellard board decided that the US$5m payment provided “certainty of vessel ownership” to Wellard and its shareholders.

“We have taken a commercial approach avoiding lengthy and expensive litigation that we would have taken to enforce our rights,” he said in today’s ASX statement.

“The extensive negotiations have resulted in a fair and reasonable outcome for the parties involved and was a major focus of Wellard management.”

With the M/V Ocean Drover’s ownership now settled, the statement also noted that the Wellard Ltd board will commence a strategic review of the future of the now single-ship company.

This would determine “the best path forward for Wellard and its shareholders”.

“The review will assess a range of considerations, including the long-term future of the Company and its assets, the current and future commercial environment, the most appropriate company structure, and how to maximise returns to shareholders from the Drover,” Mr Klepec said.

When it confirmed the sale of its second remaining vessel, the MV Ocean Ute, for US$12m (A$18m) in July, the Wellard board announced that the net proceed from the sale would be returned directly to shareholders.

Throughout the process to secure ownership of the MV Ocean Drover, Wellard has maintained full operational control of the vessel under an ongoing, long-term bareboat charter.

The Drover is trading consistently in the currently high-demand routes between South America and Turkey. It has been chartered until May 2025.