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NZ Rural Land Company – $44.3 million Rights Offer

Capital Raise24 May 2021ALFFinancials

Allied Farmers Ltd
201 Broadway, Stratford, 4332

PO Box 304, Stratford 4352


Phone: 06 765 6199

Web: http://www.alliedfarmers.co.nz

Email: headoffice@alliedfarmers.co.nz


24 May 2021


announce@nzx.com



NZ Rural Land Company Limited – $44.3 million Rights Offer


Allied Farmers Limited (“Allied Farmers” NZX: ALF) is pleased to note the

announcement today by New Zealand Rural Land Company Limited (NZX: NZL) of a

capital raising of $44.3 million by way of a 2 for 3 pro-rata renounceable rights offer

(Rights Offer).

Allied Farmers owns a 50 percent interest in New Zealand Rural Land Management

Limited Partnership (NZRLM), which is the external manager of NZL.

The NZL Management Agreement permits NZRLM to charge the fees described in

Allied Farmers’s NZX announcement on 30 April 2021.

NZL has advised that a proportion of the Rights Offer proceeds will be used by NZL

to reduce debt and provide further cash for acquisitions as NZL looks to continue its

growth as a landowner in the New Zealand rural sector.

Because the level of fees payable to NZRLM by NZL increases with additional

acquisitions that increase the level of NZL’s assets under management, the Rights

Offer should ultimately have a positive impact on ALF’s earnings from NZRLM.


Richard Perry

Chair

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