LAUNCESTON: TasFoods Ltd (ASX:TFL) said on Thursday it has signed a business sale agreement to divest its Pyengana Dairy unit to Research Corporation Pty Ltd and its associates, including the MSC ATF AgFood Opportunities Fund, in a deal valued at up to A$2 million.
The transaction includes A$1.7 million in cash and up to A$300,000 in TasFoods shares held by AgFood, plus inventory at settlement. Shareholder approval is required, with an extraordinary general meeting expected by early November.
TasFoods said proceeds will be used to reduce debt with NAB and strengthen its poultry supply chain. All receivables, payables, and employee entitlements tied to Pyengana Dairy will transfer to the buyer at settlement.
The company will continue to manage Pyengana Dairy under a paid services agreement to support operational continuity and growth. Post-transaction, Research Corporation and AgFood will hold a combined 12.94% stake in TasFoods.
TasFoods CEO Joshua Fletcher said the sale positions Pyengana’s premium dairy brand for national and international expansion under new ownership.
The company added it remains open to strategic initiatives including partnerships, vertical integration, and asset divestments aimed at enhancing shareholder returns.