Prestal Agrees to Sell Main Business for Up to $1 Million Pending Approval

Prestal Moves to Divest Core Asset

Prestal Holdings Limited (ASX:PTL) has agreed to sell 100% of its Hampers with Bite business to Australian gourmet distributor Gourmet Brands Two Pty Ltd for a consideration of up to $1 million, subject to customary adjustments and earn outs. This transaction represents a significant strategic pivot, as Hampers with Bite constitutes Prestal's main undertaking.

The deal is conditional on shareholder approval expected at an extraordinary general meeting on 25 June 2026, with completion anticipated shortly after. Prestal's board unanimously recommends the sale, citing the opportunity to pursue more accretive assets and businesses. Notably, no changes to Prestal's board or senior management are planned as a result of this transaction.

Funding New Growth Amid Market Challenges

The proceeds from the sale will be allocated towards funding the search and acquisition of new business opportunities, including due diligence and ASX recompliance costs. This move comes on the back of a tough trading environment, with Prestal reporting a 26.4% revenue decline and a sharp EBITDA drop in the first half of FY26, highlighting the challenges faced in its core operations 26.4% revenue decline.

Prestal has engaged with major shareholders representing approximately 52% of voting rights, who have signaled their intention to support the deal, barring any superior proposals. The company is now focused on executing the transaction and repositioning its portfolio to enhance shareholder value.

ASX Compliance and Listing Risks

The sale of its main undertaking triggers ASX Listing Rules 12.1 and 12.2 compliance requirements. ASX has granted Prestal a six-month window from the date of the Asset Purchase Agreement (15 May 2026) to demonstrate adequate operations and financial condition to maintain its listing. Failure to satisfy ASX by 15 November 2026 could result in suspension of Prestal's securities trading.

Moreover, the company may be required to re-comply with Chapters 1 and 2 of the Listing Rules if ASX deems it necessary. This adds a layer of regulatory risk to Prestal's transition phase, underscoring the importance of securing a new business that meets ASX's operational thresholds.

Shareholder Vote and Next Steps

Shareholders will receive further details in the Notice of Meeting expected to be distributed on 22 May 2026. The upcoming vote will be pivotal for Prestal's future direction, determining whether the company can move forward with divesting its flagship business and pivot towards new ventures.

This strategic shift follows a period of financial strain, with Prestal's losses more than doubling amid declining revenues last year, reflecting ongoing operational headwinds losses more than double. The outcome of the shareholder meeting and subsequent ASX compliance efforts will be critical markers for investors monitoring Prestal's turnaround prospects.