Tasfoods Moves To Sell Pyengana Dairy

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Australia’s TasFoods plans to divest its Pyengana Dairy business to attraction resources connected strengthening its poultry division.  

The ASX-listed poultry, food and pet-food group has entered a non-binding action statement pinch awesome shareholder MSC ATF AgFood Opportunities Fund.  

In a banal speech filing coming (11 August), TasFoods said nan action could spot nan Pyengana Dairy artisan food business sold to nan Fund’s AgFood & Associates for A$2m ($1.3m) positive inventory.  

The option, which is non-exclusive, allows TasFoods to activity replacement buyers done a trading programme group to statesman today.  

AgFood & Associates has besides indicated it is unfastened to partnering pinch different willing parties successful Pyengana Dairy, according to nan filing. 

Acquired successful 2017 to diversify TasFoods’ portfolio, Pyengana Dairy has struggled to meet capacity targets nether nan group’s superior guidance framework. 

TasFoods added that nan “current institution building is not nan due conveyance to create and standard up” nan brand. A waste would springiness Pyengana Dairy “the champion imaginable opportunity” to grow nether caller ownership successful some home and export markets, it said.

Sale proceeds would beryllium utilized to fortify TasFoods poultry proviso chain.

The planned disposal follows a push into poultry pinch nan A$1.3m acquisition of Redbank Poultry successful December 2023 via TasFoods subsidiary Nichols Hatchery.  

If exercised earlier mid-September, nan Pyengana Dairy transaction is expected to complete by 31 October, taxable to shareholder support successful mid-October.  

TasFoods will negociate nan business during nan modulation nether a paid work agreement. 

Located successful north-east Tasmania, Pyengana Dairy has been producing accepted cloth-bound cheddar for much than 130 years.  

TasFoods said it will proceed exploring “all imaginable strategical initiatives including partnerships, accrued vertical integration and complementary plus utilisation options” to maximise shareholder value. 

The institution antecedently sold its Shima Wasabi spices business to Hillwood Berries successful 2023 arsenic portion of a marque streamlining exercise.