Completion of IPM Disposal

Completion of IPM Disposal

Donegal Investment Group ("DIG") announces that it has completed the disposal of its seed potato businesses, IPM Potato Group Limited, AJ Allan Limited, IPM Portugal Limited, IPM France Limited, IPM Holland Limited and IPM Kenya Limited, collectively referred to as "IPM" to the Royal HZPC Group ("HZPC") ("the Disposal").

Following completion Donegal Investment Group has received €13.9m including existing IPM cash of €0.3m and customary completion account adjustments of -€0.5M. A further €2.4m will be held in Escrow for a period of 24 months to February 2028 ("Escrow Period").

IPM completed the sale of its Investment Property in Dublin on 13 November 2025 resulting in an additional consideration of €0.5m to DIG at completion.

A further contingent deferred cash consideration of up to a maximum of €4m is payable dependent on the financial performance of IPM for the period 1 September 2025 to 31 August 2027, inclusive ("Deferred Consideration").

Based on early indications of the performance of IPM for the financial year ended 31 August 2026, the board believes that it is highly unlikely that any deferred consideration will be forthcoming at the end of the 2-year period. The seed potato industry is experiencing a highly challenging year with market prices under significant downward pressure, particularly in some of IPM's key markets.

The Group has also retained its interests in Utkal Seeds Limited ("Utkal"), an Indian seed potato company and Kirinyaga Seeds Limited ("KSL"), a Kenyan seed potato company. As advised, the board is looking at options to realise value for shareholders from these investments.

Following completion and considering existing cash resources the Group has a net cash position of €16.4m after payment of all costs of disposal.

The board plans to return surplus funds of approx. €15.0m to shareholders in the same manner as completed in February 2022 and January 2025 and will be communicating further with shareholders over the coming weeks.

We would like to thank Davy Corporate Finance, Hayes Solicitors and Azets Ireland for their assistance during the course of the sales process.

We wish HZPC and the IPM team every success for the future in their endeavours.

Padraic Lenehan

Donegal Investment Group

Tel: 074 9121766

Anthony Farrell

Davy Corporate Finance

Tel: + 353 1 679 6363

This Announcement contains inside information and has been issued pursuant to Article 2.1(b) of Commission Implementing Regulation (EU) 2016/1055