Brisbane Markets Ltd, the owner of the Brisbane Markets site in Rocklea, is making progress towards a potential listing on the Australian Securities Exchange. The move comes after the company reached a tentative agreement to remove a separate class of industry shares, which had been a key sticking point in the shareholder structure.
The company holds over $259 million in total equity and $512 million in assets, primarily comprising investment properties. Additionally, Brisbane Markets Ltd (BML) has a 44.33 per cent stake in Perth Markets Group Limited (PMGL), having faced resistance from West Australian industry owners over a recent attempt to secure a majority stake.
The issue with the shareholder structure revolves around the Queensland Chamber of Fruit and Vegetable Industries Co-operative Limited, along with other representatives from the supply chain, including growers, retailers, and wholesale industry organization Brismark.
The provision for separate industry shares, established when BML acquired the Brisbane Markets site in 2002, grants the holders the right to appoint a director to the board and veto power over shareholder resolutions.
After two years of negotiations, BML and Brismark have agreed to terms that would pave the way for a stock market listing, subject to shareholder approval. The proposed agreement involves canceling the four industry shares and issuing ordinary shares based on their value at the time of the listing decision.
Both BML and Brismark will engage with their respective shareholders and members to seek approval for the arrangement.
BML’s financial performance has had its ups and downs. In the December half-year of 2022, BML’s operating profit dropped by 6.4 per cent to $7.9 million, primarily due to a $14 million property revaluation cut resulting in a net loss after tax of $4 million.
However, in FY22, the company’s operating revenue remained steady at $46.3 million, and net profit more than tripled to $62.3 million, largely driven by increases in property values at the Brisbane and Perth sites.
The potential ASX listing could value Brisbane’s fresh produce exchange at up to $400 million.
Published 16-May-2023
