Sharechat Logo

RD1 buying Allied Farmers rural stores

NZPA

Wednesday 3rd August 2011

Text too small?

Allied Farmers is selling its rural merchandising stores to rural services company RD1 for an undisclosed sum.

The agreement depended on RD1 reviewing land information memoranda for the stores, which was expected to be a formality and the parties were confident the agreement would become unconditional on completion of the review, Allied Farmers said today.

It had announced it was getting out of the rural stores a month ago, either by selling or closing them.

That decision was made after reviewing the recent and forecast poor performance of rural merchandising, in a highly competitive environment.

Moving out of merchandise activities would lift overall profitability, and enable the group to accelerate debt retirement.

Most of the stores being sold would continue to operate, Allied Farmers rural chief executive Steve Morrison said today.

Settlement of the sale was expected early next week, and transferred stores would start operation as part of RD1 or be absorbed into existing RD1 operations shortly after that.



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Allied Farmers may lift loan book value by $276K as IRD lurks with liquidator's axe
Allied Farmers sells Taranaki real estate unit worth 26 percent of group's value
Fire sale of toxic loans keeps Allied Farmers ticking for now
Allied Farmers tries to cobble together loan repayment as liquidation hovers
Lender runs out of patience, seeks $500k loan repayment from Allied Farmers
Crown Asset Management keeps Allied Farmers on life support
Allied Farmers' auditor refuses to give opinion on accounts
Allied Farmers granted waiver for $1.2M loan for bobby calf business
Allied Farmers wears more post-Hanover cost and delay
Allied Farmers lifts provision for loan guarantee to $1.4M