I believe we will see ongoing value accreting moves from the astute boards of ALF and NZL
ALF has some clever shareholders in our top 10
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I believe we will see ongoing value accreting moves from the astute boards of ALF and NZL
ALF has some clever shareholders in our top 10
Yes they are surprising me by every move at present
It is going to be a 5m profit year so eps will be around 18c so 1.50 per share valuation is very reasonable
Share Buyback might see double that SP - just cancel 1 out of every 2 shares :)
Easy way to double EPS too, even if no-one sees a dividend
then Split shares again .. followed by a rinse & repeat .. very tax efficient
Poor old ALF might even reach $5 a share on that pattern .. who wanted a dividend anyway ? ;)
I think ALF are ok with this. I have recently come on board again. I see the previous board were effectively rolled by Swasbrook and co. They are clever Auckland money people and have nothing with farming per se from what I can see.
However setting up NZL and the subsequent management company was a stroke of genius. Out of thin air a management company valued at $5m? was generated. Alf effectively have a portion of this.
Out of the 2 investments, ALF is the one to be long, NZL the one to be short. (Just my humble opinion)
ALF own 100% of the NZL management company. NZRLM.
• On 27 March 2023 Allied Farmer’s acquired the 50% of NZRLM not already owned, having exercised its call option on 19
December 2022. The purchase price was $8.3m as determined by an independent valuation undertaken by PwC in accordance
with the terms of the call option agreement. The purchase price was satisfied by the payment to the vendors of $6.55m of cash
(funded by a loan from Heartland Bank), and the transfer to the vendors of 1,800,227 NZL shares owned by Allied at their 20-day
volume weighted average price prior to completion date of $0.9721 per share, being a total of $1.75m.
• Allied Farmers' total acquisition cost for 100% of NZRLM is $10.8m ($2.5m for the initial 50% in December 2020, and $8.3m for the
remaining 50%), compared to the PwC valuation of $16.6m. Coupled with the return on investment to date, this has been a
significantly value accretive investment for Allied.