Rural Funds Group · ASX:RFF
Rural Funds — RFM Poultry — Merger or Acquisition (November 2019)
11 slides from Rural Funds's merger presentation, Nov 1, 2019
Slide 1: Proposed sale to ProTen and wind-up of RFM Poultry
Managed by: Proposed sale to ProTen and wind-up of RFM Poultry 1 November 2019
Slide 2: Disclaimer
Managed by: Disclaimer This presentation has been prepared by Rural Funds Management Limited (ACN 077 492 838) (RFM) as the responsible entity of RFM Poultry (ARSN 164 851 218) (RFP). The information contained in this presentation is not investment or financial product advice and is not intended to
Slide 3: Agenda
Managed by: Agenda RFM presenters 1. History of RFP David Bryant Managing Director 2. Deterioration of profitability 3. Options considered by RFM Stuart Waight Executive Manager 4. Proposed sale to ProTen and wind-up 5. Wind-up value Daniel Yap Financial Controller 6. Meeting and voting details 7. C
Slide 4: History of RFM Poultry (RFP)
Managed by: History of RFM Poultry (RFP) RFM have managed the poultry assets since 2003. Original Unitholders have received a compound annual total return (CAGR) of 10.6%. • RFM invested in the poultry industry in Value of $10,000 invested in RFM Chicken Income Fund1 2003 through the acquisition of
Slide 5: Deterioration of profitability
Managed by: Deterioration of profitability The construction of new poultry farms has negatively impacted RFP. In addition, many of the RFP sheds are reaching the end of their useful life and have Grower Contracts expiring from December 2023. Baiada poultry farms in • The construction of new poultry
Slide 6: Options considered by RFM
Managed by: Options considered by RFM RFM has considered multiple strategies and considers it in the best interests of Unitholders to exit the poultry industry to limit further losses. 1. Continue to operate Forecast losses are likely to continue because of increased costs (labour, operational req
Slide 7: Proposed sale to ProTen and wind-up
Managed by: Proposed sale to ProTen and wind-up RFM has entered into agreements to sell all of RFP’s poultry assets to ProTen who will then take over all farming operations (ProTen Transaction).1 Profit and net asset value • Continuing forecast losses mean that the capital position of RFP is deterio
Slide 8: Wind-up value
Managed by: Wind-up value The ProTen Transaction includes a $0.29 per unit transaction premium and can be implemented prior to year-end, thereby limiting further losses. Forecast DPU on wind-up1 • The ProTen Transaction provides an estimated wind-up $0.90 distribution per unit (DPU) of $0.80, repres
Slide 9: Meeting and voting details
Managed by: Meeting and voting details Under the NSX listing rules the ProTen Transaction requires the approval of Unitholders. Your vote is important to complete a quick and orderly wind-up. Key events1 • Proxy Forms should be completed and returned by no Date Event later than 11:00am (AEDT) on Tue
Slide 10: Conclusion
Managed by: Conclusion The directors of RFM believe the ProTen Transaction is in the best interests of Unitholders and recommend that you vote in favour of the Resolution. 1. The establishment of RFP followed a demerger from the CIF. The returns for CIF investors has been 10.6% per annum (compound a
Slide 11: Managing good assets with good people
Rural Funds Management Ltd ACN 077 492 838 AFSL 226701 Canberra Office Level 2, 2 King Street Deakin ACT 2600 Telephone: +61 2 6203 9700 Facsimile: +61 2 6281 5077 Website: ruralfunds.com.au Managing good assets with good people For further information: Investor relations enquiries: David Bryant Jam