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ALF
25/07/2012 12:12
GENERAL
REL: 1212 HRS Allied Farmers Limited
GENERAL: ALF: NZX WAIVER
25 July 2012
NZX WAIVER
Allied Farmers Limited (ALF) advises that it has today been granted a waiver
from NZX Listing Rule 9.2.1 to enable the ongoing annual funding of the bobby
calf business operated by Farmers Meat Export Limited (FMEL), a wholly owned
subsidiary of ALF's livestock joint venture subsidiary, NZ Farmers Livestock
Limited (NZFL). The waiver decision, which provides further background and
information on the transaction, was contemporaneously released by NZX with
this announcement.
The funders are the same as for the 2011 season, and the terms of funding are
similar. As was the case in 2011, one of the funders, Mr. Garry Bluett, is
the Chairman of ALF and is therefore a Related Party of ALF. Details of the
lending for the 2011 season were fully disclosed in the ALF 2011 Annual
Report, but did not require approval or a waiver pursuant to NZX Listing Rule
9.2.1. However, due to a combination of the quantum of proposed funding being
greater than for the 2011 season (reflecting the forecast growth in the bobby
calf business) and the level of ALF's market capitalization being less than
that at the time of the 2011 funding, the 2012 funding is deemed to be a
Material Transaction, and thus a waiver from NZX Listing Rule 9.2.1 was
sought and granted.
ALF notes that the decision to enter into the funding has been made without
the involvement or influence of Mr Bluett. ALF also notes that the terms of
the loan were negotiated on an arm's length commercial basis, that
alternative funders were not available (primarily due to bobby calf/veal
products not being considered as attractive security), and that the interest
rate for the funding is referable to the rates currently charged by its
primary funders.
ALF is therefore pleased that this funding has been secured, given that the
bobby calf business is a key component to the ongoing growth and success of
NZFL/FMEL.
End CA:00225276 For:ALF Type:GENERAL Time:2012-07-25 12:12:33
