ALF - Allied Farmers Limited

[nztx]

Getting interesting.
https://www.nzx.com/announcements/407740

Wonder if Rabo would be interested in providing some hock at a respectable cost to ALF to allow buy out of the remaining 50% ?

After all, it wouldn't look good to deprive ALF of their look in securing full ownership of the Muddy Boots Management Co, after Rabo have stepped in to save the day for NZL on the Forests deal in a time of grave need and hand outstretched

Or perhaps they mightn't want to, after having gotten in gumboots deep on financing NZL out of a tight
spot on a forestry deal that NZL appears to have signed up for in Oct 2022 without the necessary dough
in kitty before interest rates started climbing and the NZL SP lost 38% or so of it's elevation in the following 5 or so months

[nztx]

Wonder if the Muddy Boots Management Co have the dough to take up their NZL rights
on the Cap Raise - on shares they received satisfying last year's Performance Fee that was
done in NZL Shares issued at $1.65 in Oct 22, now down 36% or so since,
sitting at a buck + 5 pennies on last close ?


Or is that another job for "Find some new wealthy mates with a large bundle of loose loot" to fill a gap ?

Maybe some of those wealthy Europeans NZL attracted in might be able to assist, but ALF might have
to pull a Dual Frankfurter listing job out of the bag, like NZL announced it was doing yesterday

but they might like to see more of a smell of a regular dividend than ALF has been managing to put
out in recent times ..

Oh dear .. the trials and tribulations of keeping a delicately balanced pack of cards all upright
and in position, whilst having to plug the gaps and fill significant financial holes in the wall


With all this going on, oriiginal ALF stakeholders will be wondering whether ALF still has
any of it's core original activities going - which are hardly mentioned - funding beefies,
farming REA's etc

[Nemology]

Wonder if Rabo would be interested in providing some hock at a respectable cost to ALF to allow buy out of the remaining 50% ?

After all, it wouldn't look good to deprive ALF of their look in securing full ownership of the Muddy Boots Management Co, after Rabo have stepped in to save the day for NZL on the Forests deal in a time of grave need and hand outstretched

Or perhaps they mightn't want to, after having gotten in gumboots deep on financing NZL out of a tight
spot on a forestry deal that NZL appears to have signed up for in Oct 2022 without the necessary dough
in kitty before interest rates started climbing and the NZL SP lost 38% or so of it's elevation in the following 5 or so months

glancing into their half year...Not much cash sitting in ALFs balance sheet...is borrowing money from rabo (@6.5%??) the best use of shareholder's equity...? otherwise alf will have to issue shares to muddy boots management...muddy boots knows all about issuing shares robbing peter to pay paul...Or Is It...
issuing shares to pay paul...?

[percy]

Getting interesting.
https://www.nzx.com/announcements/407740

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).
ALF will be paying the $8.3 mil by paying a mixture of ALF shares and cash.
I would guess if half of NZRLM is valued at $8.3 mil I could asume the whole value of NZRLM would be $8.3mil times two.ie $16.6mil.
So at the end of the day ALF will own 100% of NZRLM.
What is the cost to ALF of this $16.6mil business.?
Well we know their original half cost them $2.5 mil.Add to buying the other half $8.3 mil, we have a total cost of $10.8mil.
A nice $5.8mil difference.Well done ALF.

[nztx]

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).
ALF will be paying the $8.3 mil by paying a mixture of ALF shares and cash.
I would guess if half of NZRLM is valued at $8.3 mil I could asume the whole value of NZRLM would be $8.3mil times two.ie $16.6mil.
So at the end of the day ALF will own 100% of NZRLM.
What is the cost to ALF of this $16.6mil business.?
Well we know their original half cost them $2.5 mil.Add to buying the other half $8.3 mil, we have a total cost of $10.8mil.
A nice $5.8mil difference.Well done ALF.

It will be interesting to see how ALF intends to raise the binding necessary dallop of Cash to buy out
the inflated 50% of Muddy Boots Management Company.

Shares sound great - but there is no ALF dividend - so are probably a donation style contribution
for donkey's years with ALF now carrying more tax losses than it can eat in the next 50 or 100 years

How much impairment did/will ALF wear on that $4.3m Performance fee satisfied in NZL Shares
from last year @ $1.65 issue price in Oct 2022 .. now worth just $1.03 a shot on Friday close ?

How to earn large Performance Fee then promptly lose a decent slab out of it, after the market
gets a bit lethargic and nervous about things over a few months ?

How did the ALF Board not see that coming ?

Surely the uptake on the Capital swallowing NZL Card Stacking exercise must have rung a bell or two somewhere, or was everyone busy elsewhere in other empires / with all signals switched off ?

[nztx]

glancing into their half year...Not much cash sitting in ALFs balance sheet...is borrowing money from rabo (@6.5%??) the best use of shareholder's equity...? otherwise alf will have to issue shares to muddy boots management...muddy boots knows all about issuing shares robbing peter to pay paul...Or Is It...
issuing shares to pay paul...?

Good point - potential Lenders might get a bit nervous about the vast extent of Loans and INTEREST expense
flowing out of the captive satellite outfits, all stocked up high in slow moving estates & farms
especially when the hands are spread far and wide trying to hover up new capital into the net globally

[nztx]

glancing into their half year...Not much cash sitting in ALFs balance sheet...is borrowing money from rabo (@6.5%??) the best use of shareholder's equity...? otherwise alf will have to issue shares to muddy boots management...muddy boots knows all about issuing shares robbing peter to pay paul...Or Is It...
issuing shares to pay paul...?

Wonder if Eric the Great still has some left over out of the stash hidden in the Bahamas to help out
at inflated consultancy rates ? .. nothing like a slight Hang Over returning to help out with a rescue
mission, in times when the hand is being stretched far and wide to try to save the day

[mfd]

ALF paying for the rest of NZRLM using cash (debt) and some of their NZL shares. As signaled and expected, no cap raise needed. Good stuff.

https://www.nzx.com/announcements/408504

[percy]

ALF paying for the rest of NZRLM using cash (debt) and some of their NZL shares. As signaled and expected, no cap raise needed. Good stuff.

https://www.nzx.com/announcements/408504

I think all ALF shareholders will be more than happy.
Know I am.

"The NZRLM Consideration will be satisfied by payment of $6.55 million of cash, and the transfer of $1.75 million worth of NZ Rural Land Company Limited shares owned by Allied at their 20-day volume weighted average price prior to completion date. The cash component will be funded from a combination of cash reserves and debt facilities."

I read it no ALF shares will be issued,so there will still be only 28,806,634 ALF shares on issue,and ALF's massive tax losses will be able to be carried forward.

PS.ALF's borrowings will be tax deductible,while no tax will be paid on profits [because of carried forward tax losses].

[golden city]

Just waiting patiently Alf will have its day