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Allied Farmers seek bank approval for Hanover deal

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Thu, 17 Dec 2009 1:58p.m.

Allied Farmers Ltd shares fell 1.3c to 16c by early afternoon after they resumed trading today in the wake of a meeting of Hanover Group investors yesterday.

The investors narrowly approved a proposal for Allied Farmers to purchase of assets of Hanover Group in an share to debt transaction.

Allied Farmers confirmed that Allied Farmers shares will be issued to Hanover and United investors at 20c a share.

Allied Farmers said it was working through the requirements to satisfy remaining conditions,

which include formal approvals from the external bank and third party funders of the

companies it is acquiring.

Allied Farmers managing director Rob Alloway said It had been very pleasing to see how the

banks and funders of the Hanover and United property owning companies had responded

to the proposal and the positive vote that was achieved yesterday.

"We are just completing some important final steps with some of them and we have no reason to believe at this time that we will not get all the approvals we require by later today," he said.

"The financial position of the group will be materially improved by the transaction and this is a position that is being recognised by our banking partners," he said.

He said completion of the deal was still expected to be tomorrow.

A Hanover Finance investor who held $10,000 of debenture stock at December 2008 would receive 34,794 new Allied Farmers ordinary shares.

NZPA

Comments [5]

Peter

18 Dec 2009 8:22p.m.

My reply to Henry is I don't think you have taken your pills, medicine lately or you are in dreamworld, Allied have already lost 35 million so they are just as useless as Hanover. By the way they have done the deal and by the time Hanover investers get their shares, the Allied investers have got rid of theirs. That they can do this in New Zealand and nobody of the security commission says nothing STINKS. Those 2 shits from Hanover should be investigated, it stinks to high heaven. They have walked away, so much for the monatorium for 5 years. Could it be that the vote was rigged, nothing would surprise me, they were both desperate, Hanover and Allied Farmers. On TV the other night, there was an item,about Kiwis not investing anymore, is that so a surprise, everybody has seen their money go up in smoke, the whole lot are crooks, included invester advisers. Hotchin and Watson have got theirs XMAS PRESENT already,and you, 75.4% got knotted.

graeme

18 Dec 2009 12:57p.m.

why do we have a MINISTER OF COMMERCE ,surly the 2 cockroachs who run Hanover should be investergated ,a company broke ,but a lifestyle beyond most of the investers dreams ,and they wonder why new zealanders buy property not shares .how many times have we read about this type of busines failure and the directors continue to lead a charmed life ,makes one wonder of the authorities inaction

simon

17 Dec 2009 10:18p.m.

If there was ever a case for a company that should have gone into receivership from day one it was Hanover.

Allied Farmers were gone before this deal, it will be years and years before the share price ever climbs back over 10 cents, why would it.

At least the investors could have had some control before, Hanover was going in receivership and there would have been repayments eventually.

Now the investors have zero control, your investment is now dependent on managment who acknowledge they have little understanding of commercial loans, had been already been tucked into a failed finace company for which they paid massive goodwill (bizarre) and already failed in their core business, farming.

Good luck investors, u will need it.

Henry

17 Dec 2009 8:54p.m.

Stop living in the past! The 'money' has G O N E all that was left were shonky deals and over priced real estate that owed the Depositers money.
At least now we actually OWN a share in the 'assets' and are out of the clutches of Hanover.
Let's wait and see how well we, as Allied farmers major group of shareholders, can help increase the value of the assets and make them a bit more valuable - with luck and good management.

john

17 Dec 2009 4:30p.m.

Allied farmers shares ,can u believe how dumb the majority of Hanover investors are to vote to accept this deal for money exchanged for paper ,
Hotchens and Watson must be laughting at us all ,they now have no responsibility .are new zealanders really stupid ,Allied exchange a number of worthless peices of paper for 496 MILLION we the investors will never get back the money we put in ,and the two scumbags who caused most of this ,escape scott free ,except for a bit of displayed anger ,wow what a country ,anything goes if u can afford the lawyers and accountants .watch the Allied shares take a nose dive ,at least with bankrupcy we may have got a little back within 2 years ,but 75.4% of you morons have voted for this.the injustice displayed here is disgusting to the extream