Sale of NZ Farmers Livestock

Allied Farmers Ltd
201 Broadway, Stratford, 4332
PO Box 304, Stratford 4352

Web: http://www.alliedfarmers.co.nz
Email: headoffice@alliedfarmers.co.nz


28 August 2025

announce@nzx.com


SALE OF NZ FARMERS LIVESTOCK LIMITED

Allied Farmers Limited (“Allied Farmers” NZX: ALF) is pleased to announce conditional
agreement has been reached to sell NZ Farmers Livestock Limited (NZFL) to Rural Livestock
Ltd (RLL), a South Island based livestock agency. Allied Farmers owns 67.77 percent of
NZFL, with the balance owned by a combination of NZFL livestock agents and
directors/management.

Allied Farmers’ goal is to deliver sustainable earnings growth for its shareholders by
leveraging its core strengths in managing rural assets.

In the past few years NZFL’s profitability has markedly improved. This has provided an optimal
opportunity for Allied Farmers to maximise its investment value, and at the same time enable
the creation of a larger, more robust and competitive livestock business that will benefit the
whole rural sector.

The NZFL sale will enable Allied Farmers to focus on and grow its strongly performing rural
asset management business, and to explore additional complementary investment
opportunities.

The transaction has no impact on Allied Farmers from a tax continuity perspective, ensuring
that tax losses are preserved.

The sale will be effected by the transfer of all NZFL’s ordinary shares to RLL for an enterprise
value of $10.988 million, adjusted at completion to recognise RLL’s assumption of net debt
and employee and vehicle lease liabilities, the value of NZFL’s loan book, and to recognise
agreed Target Trade Net Working Capital. Allied Farmers 67.77 percent of the sale proceeds
will be fully satisfied in cash.

The sale includes NZFL’s veal processing and marketing business Farmers Meat Export Ltd,
52% share of Hawke’s Bay based Redshaw Livestock Ltd, and saleyard interests. NZFL and
Redshaw Livestock will continue to operate as separate businesses – staff/livestock agents
will continue to be employed/contracted as they currently are, and with the same management
team.

There are several usual conditions precedent, including that Allied Farmers obtain shareholder
approval (by way of ordinary resolution) as a Major Transactions pursuant to NZX Listing Rule
5.1.1 (a). This approval will be sought at Allied Farmers’ Annual Meeting, likely to be held in
early November 2025. Further details of the transaction, including in relation to the impact on
Allied Farmers’ financial statements, will be included in the Notice of Meeting.

Completion is targeted for 1 December 2025.


Shelley Ruha
Chair

For more information:
Richard Milson richard@nzrlm.co.nz
ph. 021 274 2476