QAF

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The better managers are, in my view, those which are able to differentiate between their core and non-core businesses, and focus their effort on improving the former.

And so, QAF's divestment of Rivalea should be seen positively, and not just because they might want to pay shareholders 50 cents instead of the usual 5 cents dividend. But because Rivalea has absolutely no synergy with sliced/par-baked bread manufacturing.

You can say that having Rivalea protect's QAF's overall revenue if something bad were to happen to the bread business. But if that's how their management thinks, it means that they will go into just about any other business, which pulls their attention away from doing the best work in their core business. A company which diversifies is almost always a bad sign of management complacency and neglect of their core business.

As for local investors seeking exposure to agriculture, there are plenty listed elsewhere, and it has never been easier to own shares listed in foreign exchanges.
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The better managers are, in my view, those which are able to differentiate between their core and non-core businesses, and focus their effort on improving the former.

And so, QAF's divestment of Rivalea should be seen positively, and not just because they might want to pay shareholders 50 cents instead of the usual 5 cents dividend. But because Rivalea has absolutely no synergy with sliced/par-baked bread manufacturing.

You can say that having Rivalea protect's QAF's overall revenue if something bad were to happen to the bread business. But if that's how their management thinks, it means that they will go into just about any other business, which pulls their attention away from doing the best work in their core business. A company which diversifies is almost always a bad sign of management complacency and neglect of their core business.

As for local investors seeking exposure to agriculture, there are plenty listed elsewhere, and it has never been easier to own shares listed in foreign exchanges.
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Rainbow 
QAF Limited has previously announced its intent to pursue a sale of its Australian primary production business, including Rivalea. The marketing process associated with the sale has commenced in August 2020. This will include, among other things, advertisements appearing in a major Australian newspaper. 
https://links.sgx.com/FileOpen/QAF_Annou...eID=629325

Stay home and stay healthy, everyone.
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Rainbow 
QAF Limited has previously announced its intent to pursue a sale of its Australian primary production business, including Rivalea. The marketing process associated with the sale has commenced in August 2020. This will include, among other things, advertisements appearing in a major Australian newspaper. 
https://links.sgx.com/FileOpen/QAF_Annou...eID=629325

Stay home and stay healthy, everyone.
Heart
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Rainbow 
Clarifications
Reference is made to a report published by The Australian on 20 September 2020 titled “QAF out to bring home the bacon with Rivalea sale” (the “Press Report”). The Press Report states that: “It is understood the company has recently received offers between $80m and $100m.”. 
The above statement in the Press Report is incorrect; no such offers have been received by the Company to-date. 

As announced by the Company on 26 August 2020, the sale process for the Primary Production business has recently been launched and is in its preliminary stages. 

The Rivalea group’s Diamond Valley Pork plant in Laverton, Melbourne continues to operate at two-thirds capacity and subjected to prescribed strict safety protocols. There were no new Covid-19 outbreaks at the plant since the initial outbreak announced on 25 July 2020. A long and substantial closure of the DVP plant may have an adverse impact on the Primary Production business and as this latest development has not been factored into the FY2020 forecast above, it may result in a deviation in the forecast. As the Covid-19 pandemic is an unprecedented event and the situation is evolving, the impact cannot be reliably estimated with certainty at this point in time. Losses arising from the pandemic are not covered by insurance policies in Australia.
https://links.sgx.com/FileOpen/QAF_Annou...eID=632432

Stay home and stay safe, everyone.
Heart
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Rainbow 
Clarifications
Reference is made to a report published by The Australian on 20 September 2020 titled “QAF out to bring home the bacon with Rivalea sale” (the “Press Report”). The Press Report states that: “It is understood the company has recently received offers between $80m and $100m.”. 
The above statement in the Press Report is incorrect; no such offers have been received by the Company to-date. 

As announced by the Company on 26 August 2020, the sale process for the Primary Production business has recently been launched and is in its preliminary stages. 

The Rivalea group’s Diamond Valley Pork plant in Laverton, Melbourne continues to operate at two-thirds capacity and subjected to prescribed strict safety protocols. There were no new Covid-19 outbreaks at the plant since the initial outbreak announced on 25 July 2020. A long and substantial closure of the DVP plant may have an adverse impact on the Primary Production business and as this latest development has not been factored into the FY2020 forecast above, it may result in a deviation in the forecast. As the Covid-19 pandemic is an unprecedented event and the situation is evolving, the impact cannot be reliably estimated with certainty at this point in time. Losses arising from the pandemic are not covered by insurance policies in Australia.
https://links.sgx.com/FileOpen/QAF_Annou...eID=632432

Stay home and stay safe, everyone.
Heart
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