TasFoods Limited (ASX:TFL) announced it has entered into a Business Sale Agreement for the sale of its Pyengana Dairy business to Research Corporation Pty Ltd and Associates, including MSC ATF AgFood Opportunities Fund (AgFood). TasFoods is an Australian company that operates primarily in the food processing sector, with a focus on dairy and poultry products. The sale follows an announcement on August 11, 2025, where the company noted that it had received no other expressions of interest or further offers aside from Research Corporation Pty Ltd and AgFood.
The key terms of the sale include a price of $2 million, comprising $1.7 million in cash and up to $0.3 million in TasFoods shares held by AgFood. The transaction is subject to TasFoods shareholder approval, and an Extraordinary General Meeting (EGM) will be scheduled to seek this approval. Details regarding the EGM will be provided in a Notice of Meeting in the coming weeks. Settlement is expected to occur shortly after the EGM, potentially by early November 2025.
Proceeds from the sale will be used to reduce debt with NAB, with remaining net proceeds allocated to strengthening TasFoods’ poultry supply chain. All current receivables, payables, and employee entitlements related to Pyengana Dairy will transfer to Research Corporation Pty Ltd and Associates upon settlement. TasFoods will continue to manage Pyengana Dairy under a paid monthly Services Agreement with the new owners to ensure operational targets are met and to assist with its growth strategy. Post-transaction, Research Corporation Pty Ltd and AgFood will collectively retain 12.94% of TasFoods shares.
The company believes that the divestment of Pyengana Dairy will provide the brand with the opportunity to scale up under new ownership, supporting its growth strategy both nationally and internationally. TasFoods stated it continues to explore other strategic initiatives, including partnerships, vertical integration, and asset utilisation and divestment options, aimed at enhancing shareholder returns.
