BIL Receives $117 Million For Tasman Agriculture

Friday 15 June 2001 For Immediate Release

BIL Receives $117 Million From Tasman Agriculture Sale

Brierley Investments Limited announced today it had completed the sale of its holding in listed-company Tasman Agriculture for cash proceeds of NZ$117 million.

BIL (NZ Holdings) Ltd has been a shareholder in Tasman Agriculture Limited for the past 10 years, and has sold its 66% stake to Dairy Holdings Limited, a farming consortium based in New Zealand’s South Island.

BIL Managing Director Mr Greg Terry said the consideration represented a price of NZ$1.68 per share, which would give BIL a profit on the transaction of approximately NZ$25 million.

“We are particularly pleased with the results of this transaction,” he said.

“Eighteen months ago Tasman’s share price did not reflect the net tangible asset backing of the company’s dairy farms. We began a farm sale process so that the true value of the assets would be recognised,” he said.

Mr Terry said this had been successful and BIL was able to sell its shares at about double the average of the company’s share price over its holding period.

“We believe we have now maximised our value and it is time for other investors to take the company forward,” he said.

Mr Terry said that sales of non-core New Zealand assets over the last six months had realised cash of more than NZ$350 million. This represented a profit over book value of more than NZ$50 million.

BIL was now able to consider a number of opportunities in the Australasian region, he said.

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