Wellard Plans Delisting After Returning 15 Cents Per Share to Investors
Wellard Limited has formally requested to delist from the ASX following the sale of its final revenue-generating vessel, aiming to reduce costs and return excess cash to shareholders. The move awaits shareholder approval at the upcoming AGM.
- Sale of last revenue-generating asset completed in August 2025
- Shareholder approval for delisting sought at November 2025 AGM
- Delisting driven by inability to meet ASX operational requirements
- Plans for further capital return to shareholders post-delisting
- Shares will no longer trade on ASX after mid-December 2025
Background and Rationale
Wellard Limited, a company historically focused on livestock logistics, has announced its intention to voluntarily delist from the Australian Securities Exchange (ASX). This strategic decision follows the sale of its last revenue-generating asset, the livestock vessel M/V Ocean Drover, completed in August 2025. With no ongoing operations or significant revenue streams, the Board has concluded that maintaining a public listing is no longer in shareholders' best interests.
The company returned 15 cents per share to investors from the sale proceeds and plans an additional capital return, retaining enough cash to support minimal operations for approximately three years. The closure of its Singapore office and the winding down of its Fremantle lease underscore the shift to a leaner operational model.
Regulatory and Market Considerations
Wellard’s delisting request aligns with ASX Listing Rule 17.11 and is contingent on shareholder approval at the Annual General Meeting scheduled for 14 November 2025. The ASX has indicated it may suspend Wellard’s shares in early 2026 if the company fails to meet Chapter 12 requirements, which mandate a minimum level of operational activity for listed entities.
Given the lack of material operations, the Board anticipates that any future business opportunity would likely require re-compliance with ASX admission rules, potentially involving a new prospectus and shareholder approval. Delisting now allows the company to reduce compliance costs and administrative burdens significantly.
Impact on Shareholders and Trading
Post-delisting, Wellard’s shares will no longer be traded on the ASX, limiting liquidity and making share transfers reliant on private transactions. The company’s share registry will remain active, and shareholders will retain protections under the Corporations Act, including continuous disclosure obligations and takeover provisions, as long as shareholder thresholds are met.
Trading volumes have been low in recent months, with the top ten shareholders controlling over 77% of shares, contributing to limited liquidity and price volatility. The Board believes that delisting will mitigate the disproportionate impact of small trades on share price and market capitalisation.
Future Prospects and Litigation
While the company adopts a minimal operational status, it remains engaged in the Brett Cattle Class Action litigation, which could potentially yield damages and interest for shareholders. The Board will continue to monitor this and any new business opportunities, though it currently sees a low likelihood of re-entering the livestock logistics sector.
The company’s governance will continue under the Corporations Act, and it will maintain annual general meetings and financial reporting obligations despite the delisting.
Bottom Line?
Wellard’s delisting marks a strategic pivot to cost efficiency and shareholder returns, but investors face reduced liquidity and uncertainty over future ventures.
Questions in the middle?
- What are the prospects and timelines for resolution of the Brett Cattle Class Action?
- Could Wellard pursue a new business opportunity requiring relisting in the future?
- How will the proposed capital return impact shareholder value post-delisting?
