3 March 2023
[email protected]
NZ Rural Land Management Valuation
Allied Farmers Limited (ALF.NZX) has this morning received from PwC a binding valuation of $8.3 million for the 50 percent of NZ Rural Land Management (NZRLM)* that it does not already own (Valuation).
This means that, pursuant to the exercise of its Call Option on 19 December 2022 (see https://www.nzx.com/announcements/404303), the consideration to settle the acquisition of the 50 percent stake is $8.3 million (NZRLM Consideration), and on completion NZRLM will be wholly owned and controlled by Allied Farmers.
Now that the Valuation has been completed, each of the five NZRLM vendors are expected to shortly notify Allied Farmers of its preference for how the NZRLM Consideration will be satisfied, and, after receipt, the Allied Farmers Independent Directors will determine the optimum manner in which to satisfy the NZRLM Consideration. More details on this process are described in our Half Year 2023 Report (https://www.nzx.com/announcements/407545).
Allied Farmers will also need to determine fair value of the existing 50 percent stake in NZRLM as at the acquisition date in its FY23 Financial Statements, as required by NZ IFRS.
A further update will be provided once it has been decided how the NZRLM Consideration will be funded and satisfied, and a date determined for completion.
Philip Luscombe
Independent Director
Shelley Ruha
Independent Director
* Specifically, on completion of the Option Exercise Allied Famers will purchase:
• 500 Partnership Units of NZ Rural Land Management Limited Partnership
• 500 Ordinary Shares of NZ Rural Land Management GP Limited
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