James Packer sells meat processor, bookie eyes $104 million pay day

The Packer family has finally severed its ties with the agribusiness sector, selling its stake in meat processor Teys Brothers for an undisclosed price.

James Packer’s Consolidated Pastoral Holdings, which has owned 50% of Teys for decades, has sold its interest in the group to the Cargills, the world’s largest agricultural company.

The price of the deal is thought to be under preliminary estimates of a $500 million acquisition.

Cargill and Teys, which is owned by management, will now run a 50/50 joint venture under the slightly long name of “Teys Australia – A Cargill Joint Venture”.

The joint venture still needs approval from the Australian Competition and Consumer Commission and the Foreign Investment Review Board.

The deal comes two years after Packer sold his beef company Consolidated Pastoral to British-based private equity firm Terra Firma for $425 million.

Packer’s empire is now further concentrated around media and gambling.

Yesterday, Packer’s Crown Limited announced it would buy the Holiday Inn hotel at its Burswood Casino in Perth, and the share of the Aspinalls gaming club in London it does not already own.

In addition, Crown will spend $147 million on refurbishments on Crown casino in Melbourne and Burswood.

Another gambler set to strike it rich is veteran bookmaker Con Kafataris, who owns just under 60% of listed gambling company Centrebet in conjunction with his family.

Centrebet, which has been casting about for a consolidation deal for some months, announced yesterday that British betting giant Sportingbet has presented a proposal to acquire Centrebet for about $2.00 a share.

While no agreement has been reached and discussions remain dependent on a number of conditions (including Sportingbet completing an equity raising) the deal would deliver Kafataris and his family about $104 million.

Australian bookmaking firms are under pressure to consolidate as the highly-competitive sector comes under pressure to stump up more money in the way of returns to racing and sporting clubs.