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Dawn Meats Confirms Extra Payout in Alliance Deal as Vote Nears

Shareholders vote next week on a takeover that now includes an additional dividend after Alliance met profit and debt targets.

Overview

  • Dawn Meats said Alliance exceeded profit guidance and reduced net debt, triggering a NZ$20–25m top-up under the agreed adjustment mechanism.
  • The top-up would be paid as a post-completion dividend to cooperative members, contingent on farmer shareholder approval of the scheme.
  • With NZ$40m in previously agreed loyalty payments, member distributions would total about NZ$60m if the deal proceeds.
  • The proposal would give Dawn Meats a 65% stake in Alliance Group for NZ$250m, with a final vote tally expected Monday or Tuesday.
  • Alliance’s board unanimously recommends approval and has warned of limited alternatives, including potential insolvency, while an independent adviser judged the offer the best available option.