Sale of NZ Farmers Livestock

28/08/2025 08:31 NZST, TRANSACTP

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