- Australian Dairy Nutritionals Group (AHF) has sold its Drumborg farm in Victoria for $6 million
- The sale will include land, livestock and associated equipment, except the A2 cows who will be relocated to AHF’s existing farms
- The AHF Board has decided to sell the farm as its milk exceeds the group’s production requirements and is located two hours away from manufacturing operations
- Funds from the sale will be used to strengthen AHF’s balance sheet by repaying part of its debt facility
- On the market this afternoon, AHF is up 5 per cent and is trading for 8.4 cents per share
Australian Dairy Nutritionals Group (AHF) has sold its Drumborg farm in Victoria for $6 million.
The sale will include land, livestock and associated equipment, except the A2 cows who will be relocated to AHF’s existing farms in Camperdown.
The purchaser, who is not named, will need to pay a 10 per cent deposit for the sale, which includes $60,000 to be paid on the execution of the sale and a further $540,000 when the contract becomes unconditional.
The AHF Board has decided to sell Drumborg as the milk produced at the farm is surplus to the group’s production requirements and is located two hours away from its manufacturing operations in Camperdown.
Sale proceeds will be used to strengthen AHF’s balance sheet by repaying part of its debt facility.
Settlement of the deal is expected on January 29, 2021, however, it does rely on the purchaser obtaining funding for the purchase.
“The board is pleased with the sale price for the Drumborg farm and believe it reflects the strong demand for quality dairy farms in South West Victoria,” AHF told the market.
Earlier this week, the company said it is on track to become Australia’s first producer of organic baby formula. The first production of Organic A2 Milk powder is expected in July next year.
On the market this afternoon, AHF is up 5 per cent and is trading for 8.4 cents per share at 3:49 pm AEDT.