Australia’s TasFoods has announced the sale of its Pyengana Dairy business, a pivotal step in its strategy to enhance its poultry processing division.
The artisan cheese business will transition to Research Corporation Pty Ltd and Associates, which includes the MSC ATF AgFood Opportunities Fund, a key shareholder in TasFoods.
In a stock exchange filing dated 25 September, the group, also engaged in pet-food production, stated that the sale proceeds will go toward reducing debt.
This transaction is valued at A$2 million ($1.3 million), which includes A$1.7 million in cash and up to A$300,000 in TasFoods’ shares held by AgFood, along with existing inventories.
TasFoods emphasized that a portion of the proceeds will enhance its poultry supply chain.
“It is our view that the divestment of Pyengana Dairy to Research Corporation Pty Ltd and Associates provides the premium brand and artisan award-winning products with the best possible opportunity to achieve its full potential of scaling-up under new ownership as part of the business unit’s growth strategy nationally and into export markets overseas,” TasFoods stated in the filing.
This move concludes a process that initiated in August, following a comprehensive strategic review of the company’s operations.
Initially acquired in 2017 to diversify TasFoods’ portfolio, the company asserted that its “current company structure is not the appropriate vehicle to develop and scale up” the cheese business. The proposed sale facilitates Pyengana Dairy’s “best possible opportunity” for growth under new ownership, targeting both domestic and export markets.
TasFoods further conveyed that it has received no other expressions of interest beyond those from Research Corp. and AgFood.
This transaction awaits shareholder approval, with an extraordinary general meeting (EGM) scheduled in the upcoming weeks, likely in November.
Post-transaction, TasFoods will continue to oversee Pyengana Dairy under a paid monthly services agreement with the new owners, ensuring operational goals are met while supporting its growth strategy.
Following the transaction, Research Corporation Pty Ltd and AgFood will collectively retain 12.94% of TasFoods shares, as confirmed in the filing.
