Australian Agricultural Company chief executive quits

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Australian Agricultural Company chief executive quits

After more than five years in the top job, Australian Agricultural Company chief executive Hugh Killen resigned.

The company said in a statement to the Australian Stock Exchange that it was the right time to start an executive leadership transition.

The statement says that the board and I would like to thank Hugh for his significant contribution to the business and recognise the progress that has been achieved under his leadership.

Hugh steered AACo through some of the worst droughts and floods Australia has ever seen, the global impacts of COVID 19 and market fluctuations as a result of market impacts. The value of the herd was nearly $200 million, as AACo posted an operating profit of $49.9 million last month.

The company's herd has increased to about 382,000 head and its property portfolio was valued at $254 million in May.

Chief Operating Officer Dave Harris will take over the role of acting chief executive.

The board will conduct an executive search process that will include internal and external candidates in the domestic and international market, according to the statement.

It comes after Andrew Forrest's investment company Tattarang made a significant increase in its shareholding in AACo.

Tattarang started buying into AACo last year and purchased another $122 million worth of shares last week, bringing its holdings to 17 per cent.

A takeover bid must be made when the investment is less than the 20 per cent threshold.

Tattarang didn't say anything about the AACo investment.