Allied farmers vote to buy Hanover

Allied Farmers shareholders today voted overwhelmingly in favour of moving ahead with purchasing the assets of Hanover Finance at a special meeting in Hawera. A total of 17.7 million share votes were cast with 92.09 per cent in favour of the move reports Stuff. 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 percent 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