HPP Secures US$3.38M Tax Refund, Plans Asset Returns and Strategic Expansion
Health and Plant Protein Group Ltd (HPP) has received a US$3.38 million tax refund from the US IRS linked to its 2023 US subsidiary sale, slightly exceeding prior estimates. The company plans to return surplus assets to shareholders and pursue strategic growth opportunities under a leaner cost structure.
- Received US$3.38 million tax refund from US IRS
- Refund relates to 2023 sale of US subsidiary MacFarms, LLC
- Plans to return surplus net assets to shareholders
- Exploring acquisitions and strategic combinations
- Board reviewing surplus assets and confidential corporate opportunities
US Tax Refund Boosts HPP’s Cash Position
Health and Plant Protein Group Ltd (HPP) has announced the receipt of a US$3.38 million tax refund from the US Internal Revenue Service (IRS), a significant milestone following the sale of its US subsidiary, MacFarms, LLC, in April 2023. This refund, deposited on 13 May 2025, slightly exceeds the company’s previous estimates and marks the resolution of a long-standing tax matter tied to the transaction.
Strategic Focus on Shareholder Returns and Growth
With the tax refund now secured, HPP’s board is turning its attention to optimising the company’s capital structure. The group intends to return a portion of its surplus net assets to shareholders, potentially through an equal access off-market share buy-back, a return of capital, or a combination of both. This move signals a commitment to delivering tangible value back to investors after a period of restructuring and asset divestment.
Simultaneously, HPP is positioning itself for future growth by pursuing value-add opportunities. These include acquisitions, equity investments, or strategic combinations, all underpinned by a significantly reduced cost base. The company’s leaner financial footing could enable more agile and opportunistic moves in the competitive food products sector.
Board’s Review and Confidential Corporate Opportunities
The board is currently finalising its review of surplus net assets and revisiting previously considered corporate opportunities. While details remain confidential and incomplete, the company is actively exploring proposals that could reshape its strategic direction. However, HPP cautions that there is no certainty these discussions will culminate in binding agreements or immediate outcomes.
Importantly, HPP is also preparing for the resumption of trading in its shares, a development that could reinvigorate investor interest and liquidity. The board aims to provide a further update by the end of the financial year, offering more clarity on the company’s strategic path and capital management plans.
Looking Ahead
HPP’s recent tax refund receipt and strategic intentions reflect a company at a crossroads, balancing returning value to shareholders with the pursuit of growth in a competitive market. Investors will be watching closely for the board’s next moves and the potential impact on the company’s market standing.
Bottom Line?
HPP’s next steps on asset returns and strategic deals will be key to unlocking shareholder value.
Questions in the middle?
- What specific acquisitions or strategic combinations is HPP considering?
- How will the company structure the shareholder return—buy-back, capital return, or both?
- When exactly will HPP resume trading and how will the market react?
