Highlights

• Duxton Farms has agreed to sell its apple business and associated assets for approximately A$9.2 million.

• The buyer is New Zealand-based DAA Holdco Limited.

• The transaction includes freehold and leasehold properties, together with associated plant and equipment

• Settlement is expected at the end of July 2026, subject to customary conditions.

Duxton Farms Ltd (ASX:DBF) has entered into an agreement to sell its apple business, marking another step in the company's strategy of reshaping its agricultural portfolio and reallocating capital toward projects that it believes offer stronger long-term value creation. The transaction involves the sale of the operating business together with key property assets and equipment for approximately A$9.2 million.

During the morning session on 26 June 2026, Duxton Farms shares traded at AUD 0.44, down 1.11% or AUD 0.005. Over the past 12 months, the stock has declined 66.03%, representing a fall of AUD 0.87. The latest announcement relates to a portfolio management decision aimed at simplifying the company's asset base and directing capital toward its broader agricultural development strategy.

About Duxton Farms

Duxton Farms Ltd is an Australian agricultural company that owns and operates a diversified portfolio of farmland assets across multiple states. The company manages approximately 177,332 hectares of agricultural land spanning New South Wales, Victoria and the Northern Territory.

Its operations include dryland and irrigated cropping, livestock breeding and trading, grain, pulse and lucerne production, as well as ongoing infrastructure upgrades across its farming portfolio. The company's property portfolio includes Walla Wallah, Cowaribin, Merriment, Yarranlea, West Plains, Lenborough, Kentucky, Piambie and Mountain Valley. Duxton Farms also owns subsidiary Duxton Pistachios Pty Ltd and continues to manage a diversified agricultural investment platform.

Apple Business to Be Sold for Approximately A$9.2 Million

The company announced that it has accepted an offer from New Zealand-based DAA Holdco Limited to acquire its apple business for approximately A$9.2 million.

The proposed transaction extends beyond the operating business itself and includes a range of agricultural assets associated with the apple operations.

Among the assets being transferred are the freehold property located at Loxton in South Australia, leasehold properties situated at Monarto and Nangwarry in South Australia, together with all associated plant and equipment used in the business.

Completion of the sale remains subject to customary conditions precedent, including obtaining the required lessor consents for the transfer of the leasehold properties.

According to the company, the sale agreement has already been executed by both parties, providing a defined pathway toward settlement once the outstanding conditions have been satisfied.

Exit Comes Less Than Nine Months After Acquisition

One notable aspect of the transaction is the relatively short period between acquisition and divestment.

Duxton Farms acquired Duxton Apples Pty Ltd less than nine months ago. Since completing that acquisition, the apple business has operated profitably, according to the company.

Despite the positive operating performance, the Board undertook a review of the investment and ultimately decided that redeploying capital elsewhere would better align with the company's longer-term strategy.

The company stated that the agreed sale price represents an uplift compared with the original acquisition price.

While financial details relating to the earlier purchase were not disclosed in the announcement, management noted that the transaction delivers a higher value than the amount initially paid to acquire the business.

The Board said that, after careful consideration, exiting the investment would allow greater focus on projects considered more closely aligned with Duxton Farms' strategic priorities.

Strategic Focus Shifts Toward Core Development Projects

Rather than continuing to operate the apple business, Duxton Farms intends to concentrate resources on its core development projects.

Management believes these projects have the potential to create greater long-term value for shareholders than retaining the apple operations.

The latest transaction reflects a broader capital allocation strategy that prioritises investment opportunities capable of delivering comparatively higher returns over time.

Instead of expanding across every agricultural segment, the company is increasingly focusing on businesses and assets that fit its long-term development pipeline.

The Board indicated that the divestment forms part of an ongoing review of the company's portfolio following its merger activities.

Capital Recycling Strategy Continues

Beyond the sale itself, Duxton Farms also outlined its intention to continue rotating capital across its agricultural portfolio.

The company stated that proceeds generated from asset sales will support investment into other opportunities within its post-merger portfolio.

Management explained that capital will progressively be redirected away from certain broadacre farming assets where appropriate and allocated toward opportunities expected to generate comparatively higher returns on invested capital.

This approach reflects an active portfolio management strategy rather than a one-off disposal.

The company indicated that future capital allocation decisions will continue to be guided by expected returns and long-term shareholder value creation.

Settlement Expected at End of July

With the sale contract now executed, attention turns to completion of the transaction.

Settlement is currently expected to occur at the end of July 2026.

Before settlement can take place, several customary conditions must be satisfied, including obtaining the required approvals relating to lease transfers.

Once those conditions are met, ownership of the apple business, associated properties and operating equipment will transfer to DAA Holdco Limited.

The buyer is based in New Zealand, expanding its agricultural footprint through the acquisition of the South Australian apple operations.

Assets Included in the Transaction

The divestment includes multiple components that collectively form the company's apple business.

These comprise the freehold property at Loxton, leasehold farming properties located at Monarto and Nangwarry, and all associated plant and equipment used by the operation.

The inclusion of both owned and leased assets means the transaction represents a comprehensive transfer of the apple business rather than the sale of selected properties alone.

Following settlement, Duxton Farms will no longer own or operate these apple production assets.

Why the Company Chose to Exit a Profitable Business

Although the company confirmed that the apple business has been profitable since its acquisition, profitability alone was not the deciding factor behind the Board's decision.

Instead, management concluded that reallocating capital toward core development initiatives offered a better strategic fit within the broader portfolio.

The company also highlighted that the agreed sale price exceeded its purchase price, allowing it to realise an uplift while simultaneously simplifying the portfolio.

This combination of a profitable exit and capital redeployment formed the basis of the Board's decision to proceed with the sale.

Portfolio Optimisation Remains a Key Theme

The latest announcement highlights Duxton Farms' continued emphasis on actively managing its asset base.

Rather than retaining every acquired business indefinitely, the company appears focused on evaluating each investment against broader strategic priorities and expected capital returns.

Management indicated that capital will continue to be rotated into opportunities within the post-merger portfolio where directors believe stronger returns may be achieved.

That approach allows the company to concentrate financial resources on projects considered more closely aligned with its long-term development objectives.

What This Means for Investors

Duxton Farms' latest announcement represents a strategic portfolio management decision rather than an operational update. By agreeing to sell its apple business for approximately A$9.2 million, the company is seeking to redirect capital toward development projects and investment opportunities that it believes will generate greater long-term value.

The transaction also demonstrates the company's capital recycling strategy, with proceeds expected to support future investments across its post-merger portfolio. Although the apple business had been operating profitably, management concluded that the agreed sale price, which represents an uplift on the original acquisition cost, together with the opportunity to focus on core development initiatives, better aligns with its long-term capital allocation priorities.

Settlement remains subject to customary conditions and is expected to occur at the end of July 2026. Investors are likely to monitor how the company deploys the proceeds from the divestment as it continues reshaping its agricultural portfolio.