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- Release Date: 06/09/13 19:01
- Summary: ASSET: ALF: Allied Sells Saleyard Interests to NZ Farmers Livestock
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ALF
06/09/2013 17:01
ASSET
REL: 1701 HRS Allied Farmers Limited
ASSET: ALF: Allied Sells Saleyard Interests to NZ Farmers Livestock
6 September 2013
ALLIED SELLS SALEYARD INTERESTS TO NZ FARMERS LIVESTOCK
Allied Farmers Limited (ALF) advises that it has today sold its saleyards
interests in Taranaki, Manawatu, Waikato and King Country ("Saleyards") to
its joint venture subsidiary, NZ Farmers Livestock Limited (NZFL). The sale
price for the Saleyards was $3,643,000, being the registered valuation. This
completes the process anticipated during the formation of NZFL, and leaves
ALF with a shareholding interest in what has proven to be a robust and
successful livestock business.
Allied Group Chairman, Garry Bluett, said "the purchase of the Saleyards is a
significant milestone for NZFL as it locks in the ownership of a key
strategic asset. This will provide NZFL with the catalyst and security to
continue to grow the business for the benefit of our customers and staff".
The purchase of the Saleyards was funded by a combination of senior and
junior debt from the ANZ Bank and an associated party of NZFL's Chief
Executive, Steve Morrison, respectively. Mr Bluett said "the support shown by
these lenders is a reflection of the faith they have in the strength and
on-going growth of the business".
Proceeds of the sale will be used to reduce debt to ALF's secured lender,
Crown Asset Management Limited ("CAML"). However, CAML has allowed ALF to
immediately draw down up to $310,000 under existing facilities to enable ALF
to fund a number of outstanding commitments.
NZX Regulation has granted the accompanying waiver in relation to the
transactions referred to above. The waiver decision provides further
background and details on the transactions.
Garry Bluett
Chairman
End CA:00240842 For:ALF Type:ASSET Time:2013-09-06 17:01:31
