Urgent inquiry launched into 'unusual' Allied Farmers share trade

Allied Farmers chairman John Loughlin. Photo / Dean Purcell.

Stock exchange operator NZX has referred what it called "unusual" trading in Allied Farmers shares yesterday to the Securities Commission for urgent inquiry under the commission's statutory powers.

Allied Farmers shares fell 8c to 20c yesterday, with data showing around 350,000 of the shares changed hands during the day.

NZX said it had also asked the originating broker about the unusual trading and had made an inquiry of Allied Farmers.

Earlier today the Allied Farmers board said it was unaware of the buyer or seller of a large parcel of its shares yesterday.

In a statement, Allied Farmers listed matters it considered to be price sensitive for its shares since August, pointing out it had already advised the market of those issues.

There were no other price sensitive matters that the board considered should be disclosed to the market now under listing rules, the company said.

On Tuesday Allied Farmers shareholders voted in favour of a plan to buy the assets of failed finance company Hanover, in a deal valued at $396 million.

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 who put their money into financial products sold by Hanover and United. That vote is next Wednesday.

Around lunchtime today, shares in Allied Farmers were unchanged at 20c.

- NZPA