ALF - Allied Farmers Limited

[WAIKEN]

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

[golden city]

Yes they are surprising me by every move at present

[nztx]

Positive for ALF.
https://www.nzx.com/announcements/424986

NZL: "Let's grab the opportunity to get out of a tight spot" ?


Will Performance fees payable to ALF also reduce by 25% ?

Do they get a chop out of the sale performance as well ?

[percy]

NZL: "Let's grab the opportunity to get out of a tight spot" ?


Will Performance fees payable to ALF also reduce by 25% ?

Do they get a chop out of the sale performance as well ?

Read the announcement....Good deal for ALF....
I put the link there for you to use.

[nztx]

Read the announcement....Good deal for ALF....
I put the link there for you to use.

Sure .. Interim dividend on the way in July you reckon ?

Or buyback ? they might recall some of golden's stash for cash

That might surprise ..


Alas .. a bit of a SP sneeze / whimper today on that announcement for ALF

[percy]

Sure .. Interim dividend on the way in July you reckon ?

Or buyback ? they might recall some of golden's stash for cash

That might surprise ..


Alas .. a bit of a SP sneeze / whimper today on that announcement for ALF

With their huge tax losses it would make no sense paying a divie.
I would think they will look to reduce debt.

[golden city]

It is going to be a 5m profit year so eps will be around 18c so 1.50 per share valuation is very reasonable

[nztx]

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 ?

[blackcap]

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)

[percy]

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.