Hanover investors say yes to Allied

Hanover investors have voted by the narrowed to margins to accept the debt for equity swap put up by Allied Farmers.

Wednesday, December 16th 2009, 5:07PM

"This strong level of support from investors shows that they believe that the Allied Farmers' proposal was the best option for them.

"By accepting this proposal, investors have chosen an opportunity to realise much greater long-term value from their investment than remaining in the existing Debt Restructure Plan [DRP]."

Henry said the Allied Farmers proposal provides a much better structure for the assets to be held in than the Hanover and United companies could have achieved in the foreseeable future given the extremely difficult commercial development property market.

Shareholder Mark Hotchin said he was pleased that Hanover investors have voted to take up the proposal.

"This outcome reinforces investors made the right decision last year to vote for the DRP moratorium. It allowed time for options such as this Proposal to become possible.

"Allied Farmers has a good future - it now has a considerable asset base and the time and resources available to achieve much greater value from the assets in the future.

"My immediate focus is to work with the independent directors to ensure the smooth transition of all Hanover assets to Allied Famers."

Henry thanked investors for their participation at the recent investor meetings held around the country, and in reviewing the Proposal material.

"We wish Allied Farmers well with the next phase of its history," he said.

The vote was very close in one category of Hanover investments, with 75.4% ofHanover debenture holders voting in favour. To succeed the proposal needed to reach the 75% mark. Meanwhile 79.5% of United Finance investors voted yes and Hanover's other two classes of investors voted 97.4% and 88.3% in favour.

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