Alliance Group shareholders approve Dawn Meats deal

Core Points - Farmer-shareholders of Alliance Group have approved a deal for Irish processor Dawn Meats to acquire a 65% stake in the New Zealand co-op for NZ$270 million ($154.4 million) [1] - The deal was supported by over 87% of the votes from 2,675 shareholders, representing more than 88% of the company's issued shares [1][2] - The investment aims to strengthen Alliance Group's financial position, enhance operational capability, and ensure continued farmer ownership [3] Financial Details - Dawn Meats initially proposed a NZ$250 million bid for the 65% stake but increased the offer by NZ$20-25 million based on profit and debt targets [2] - Approximately NZ$200 million of the proceeds will be used to repay Alliance's short-term working capital facility, with the remainder allocated to capital expenditure [4] - Alliance Group reported revenue of NZ$1.8 billion in 2024 but incurred a loss after tax of NZ$95.8 million [5] Future Outlook - The funds from the deal will be utilized to reduce debt, accelerate capital programs, and provide distributions to farmer-shareholders of up to NZ$20 million in the current and next financial years [3][4] - Alliance Group is forecasting a return to profitability after a challenging period, particularly in the global red meat sector [5][6]