Allied offer for Prime gets green light

Allied Farmers' takeover offer for Prime Finance has been given the green light by Prime's directors after ranking at the top end of an independent valuation range.

Independent adviser Horwath Porter Wigglesworth Ltd said the Hawera-based rural services firm's offer of $2.80 per share was "fair market value", with Prime's shares valued at between $2.44 and $2.88 per share.

Prime's directors have unanimously recommended shareholders accept the offer, which values the company at $15.6 million.

Allied announced on April 10 it intended to conditionally bid for the shares in Prime Finance it does not already own.

Allied has already entered into a conditional lock-up agreement to buy a 60.09 per cent stake.

Details of the offer were mailed to Prime shareholders yesterday.

Shares in Allied last traded unchanged at $2.35 against a year high of $2.95 and a low of $2.00.

- NZPA