Wellard secures ownership of M/V Ocean Drover and initiates strategic review

Wellard Limited (ASX:WLD) has secured full and unencumbered ownership of the M/V Ocean Drover after reaching an agreement with KPMG Singapore to pay US$5 million. The resolution has enabled the board to commence a strategic review of the Company to determine the best path forward for Wellard and its shareholders, following the recent sale of the M/V Ocean Ute. The reconveyance of unencumbered title to the Drover is expected to take place by the 14th October 2024.

Executive Commentary on Ownership of M/V Ocean Drover and Strategic Review

We have taken a commercial approach avoiding lengthy and expensive litigation that we would have taken to enforce our rights. The extensive negotiations have resulted in a fair and reasonable outcome for the parties involved and was a major focus of Wellard management. 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.

Summary of Wellard's Ownership of M/V Ocean Drover and Strategic Review

Wellard Limited (ASX:WLD) has successfully secured full and unencumbered ownership of the M/V Ocean Drover, resolving the issue that arose in June 2023. The company has initiated a strategic review to determine the best path forward, considering the long-term future of the Company and its assets, the current and future commercial environment, the most appropriate company structure, and how to maximize returns to shareholders from the Drover. The reconveyance of unencumbered title to the Drover is expected to take place by the 14th October 2024, providing certainty of vessel ownership to Wellard and its shareholders.