Well they have finally done it!
Not that it affects me in any way but what a shame
to see an icon in the agribusiness go this way
All they need now is AAC approval but would have to think they wouldn't get to much trouble in that respect
Let's face who'd want to run an egg business these days anyway?
Obviously no one else wanted the other bits and pieces
so they are now left to battle on with whats leftover
Good luck directors and shareholders
The stock is up a bit today but we need to remember that the issue price was 50 cents and company performance has benn disappointing to say the least
except for the last year
Sales Executed
22-01 1236
Directors are pleased to announce that contracts regarding the sale
of Farm Pride's egg business and its Victorian Keysborough land and
buildings have been executed.
The contract selling the egg business is subject to Farm Pride
shareholder approval. The contract selling the land and buildings is
subject to the completion of the egg business contract of sale.
The egg business has been sold to a 100% owned subsidiary of Sunny
Queen Ltd, a major Australian egg marketer located in Queensland for
the sum of $6.1 million plus stock value, while the land and
buildings have been sold to a separate purchaser, Micraig Pty Ltd,
for the sum of $4.0 million.
As previously announced, the sale process was prompted because the
Company did not have the necessary scale needed to generate
reasonable shareholder returns in the "commodity" egg business and
that further investment or acquisitions in eggs could not be
justified.
The Company will retain its profitable Golden Days business and
continue to aggressively explore growth options in complementary
"value added" food businesses. The Company will make further
announcements as these opportunities are realised.
The sale represents a significant step in the implementation of the
Company's strategy to direct activities to higher margin "value
added" food businesses. The results from the Company's recent
purchase of the Golden Days "healthy snacks" business from II J Heinz
Company are exceeding initial expectations.
Directors believe the sale was timely and the price achieved
attractive.
A general meeting of shareholders of Farm Pride is expected to be
held in or about March to approve the sale of the egg business.
T Dynon
MANAGING DIRECTOR
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