TasAg dairy farms sell at premium

The corporate dairy farmer has sold three large-scale Canterbury and North Otago dairy farms at auction over the past two 2 days, fetching a total of $11.255 million.

Strong interest at the auctions helped push prices around 10% above recorded values.

TasAg chief executive, Ray Parker, says that's a good indication of the rising market.

"Our portfolio of farms was revalued by independent valuers in May and to achieve sale prices above book value is a sound result."

"Furthermore, the prices received significantly underpin the company's NTA of $1.53 per share and confirm that at $1.25 our current share price is still trading at an unjustifiably high discount to our asset backing".

Mr Parker says there is now strong interest in TasAg's intentions for continuing the Canterbury and North Otago sales process. Three further dairy farms are scheduled for auction in Southland and South Otago in the middle of September.

Last month the company, of which BIL owns two-thirds, announced a record profit of $12.58 million.

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