My view on halt, page-43

I think that the announcement was appropriate as presented. CDC is owned by Aussie Farmers Direct and is an own source supplier of AFD's dairy needs. The 29/12/15 announcement did not address the point of whether, post acquisition, the AFD supply arrangements would be maintained. Today's announcement confirms this in terms of the arrangements not only being maintained, but being made exclusive and likely, future opportunities, co-operation and product lines will be put in place (as per today's announcement), to further cement /reinforce the relationship, post acquisition.

Today's announcement also only mentioned AFD twice, the first in terms of progressing the CDC transaction, and the second in terms of establishing the post acquisition supply, future direction and contract relationship. The announcement therefore did not need to venture beyond the strict dealings with AFD today.

But you point is taken. Some may well require constant reinforcement of announcements, etc which is one of the clear differentiation points between short term traders and longer term investors and fundamentalists.


Often when a vendor exits (just like with a separation or marriage breakup), the break is complete, rather than continued with in any form. Today's announcement demonstrates that not only is there to be a post acquisition relationship in place. It is also to be significantly enhanced and extended upon in the future.

As for Woolworths, you are right. It was not mentioned today. Nor was China /Shanghai. Nor was the ongoing development, release and marketing of CDC's own branded products (including new product varieties which were recently referenced in the local media). Nor for that matter was the ongoing Fonterra supply contract (directly concerning AHF). Nor what's happening with CDC milk sourcing arrangements. Nor the status of the 250 (guaranteed) in-season cows (on Heywood 1) that were due to start calving from January. But today's announcement didn't concern any of these as, at this stage, it didn't need to.

Today's announcement was concerned primarily with the loyalty options, making certain that they will all be exercised (directly or via the underwriting arrangement with Bell Potter) and a progress update on the current status of the CDC acquisition transaction being completed.

Very likely, the underwriting arrangement /certainty of receipt of the loyalty options' proceeds was another condition precedent in the overall transaction /banking arrangements, etc that was today satisfied by AHF.

Many of the other points that could well have also been commented on did not end up being mentioned at this particular time, as there was no need to do so. Going forward, they may well end up being mentioned, but quite likely, this will be done at the time of the CDC acquisition being completed (which will be when all conditions precedent have been satisfied). Likely, then, AHF will also publish a new investor presentation taking all of this into account. And either proximate to this occurring, or very soon thereafter, the Interim results will be released and a further investor update /presentation then also provided. So, it looks like everything is now being tied in together as part of a progressive release /stream of information stretching out over the next 4-8 weeks.