Allied Farmers shareholders approve Hanover plan

Allied Farmers managing director Rob Alloway (left) and chairman John Loughlin. Photo / Dean Purcell.

Allied Farmers shareholders have today voted in favour of a plan to buy the assets of failed finance company Hanover.

The company said two resolutions were passed at a special meeting today in Hawera. The hurdle for approval was 50 per cent. The exact voting numbers will be released later.

The meeting passed a resolution to approve the purchase by Allied Farmers Investments of the finance assets of Hanover Finance and United Finance and a resolution to issue new Allied Farmers' shares as consideration.

The deal also needs the approval of 75 per cent of investors in Hanover. That vote is on December 16.

The deal's promoters have been on a roadshow around the country presenting to investors.

The deal involves Allied Farmers taking over all of Hanover's remaining assets valued at $396m.

Hanover investors are paid in shares and end up owning most of Allied Farmers' shares.

They receive shares to the equivalent of 72c in the dollar, having been paid six cents in the dollar under a moratorium.

Hanover Finance debenture holders are currently forecast to receive 70c in the dollar if the moratorium is allowed to continue.

- NZPA