Hanover investors vote to accept Allied Farmers shares
Investors in Hanover Finance voted to accept shares in Allied Farmers, betting that the asset swap offers the best hope of recovering the value of their investments.
Wednesday, December 16th 2009, 5:01PM 
3 Comments
More than the required 75% of the investors backed the plan at a meeting in Auckland. The deal ostensibly values the shares at $400 million.
The deal will transform Allied into a finance company of vastly more equity paper, with 97% held by the new investors. Allied's existing shareholders have already backed the deal, which will water their holding down to less than 5%.
Shares of Allied last traded at a record low 19 cents before being halted for the vote. They traded above $1.50 in January 2008.
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Comments from our readers
On 16 December 2009 at 5:27 pm Nigel Tate said:
This looks like another way of clearly identifying the need for greater public Financial Literacy work to be done. Good luck Diana, I hope the Retirement Commission can help them. On 16 December 2009 at 5:51 pm kate savage said:
if in fact the debt ratio of allied farmers is $38 to every $1 of assets then the investors are very brave or foolhardy.One consolation is that the directors have large personal investments to lose if this fails so will do what it takes to make a go of it On 16 December 2009 at 7:03 pm Andrew Parkinson said:
One of the things one has to accept in a democratic society is that more often than not the minority has to accept their fate based on the wishes of the majority. Hopefully the majority is right in this case and the Allied offer works out to the best for us all. Personally I didn't support the asset swap but now wish Allied management, staff and directors well, I sincerly hope you can provide Hanover investors with a favourable outcome. But now we wont know what the alternative would bring. I agree with Nigel's sentiment - greater public financial literacy is highly desirable. Commenting is closed
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