TasFoods secures Pyengana Dairy sale

Core Insights - TasFoods has agreed to sell its Pyengana Dairy business to Research Corporation Pty Ltd and Associates as part of a strategy to enhance its poultry processing operations [1][3] - The transaction is valued at A$2 million (approximately $1.3 million), which includes A$1.7 million in cash and up to A$300,000 in shares, along with inventories [2] - The sale is expected to provide Pyengana Dairy with better opportunities for growth under new ownership, particularly in domestic and export markets [3][4] Financial Details - The proceeds from the sale will be utilized to pay down debt and strengthen the poultry supply chain [2] - Post-transaction, Research Corporation Pty Ltd and AgFood will collectively hold 12.94% of TasFoods shares [5] Strategic Context - The decision to divest Pyengana Dairy follows a strategic review initiated in August, indicating that the current structure was not suitable for scaling the cheese business [4] - TasFoods will continue to manage Pyengana Dairy under a paid monthly services agreement to ensure operational goals are met [5] Approval Process - The transaction is subject to shareholder approval, with an extraordinary general meeting (EGM) expected to be scheduled in November [5]