Hanover investors approve Allied Farmers Proposal

Wednesday 16 December 2009
Media release

Hanover investors approve Allied Farmers Proposal

Hanover Independent Chairman David Henry has announced investors have voted in favour of the Allied Farmers Proposal.

“This strong level of support from investors shows that they believe that the Allied Farmers Proposal was the best option for them.

“By accepting this Proposal, investors have chosen an opportunity to realise much greater long-term value from their investment than remaining in the existing Debt Restructure Plan [DRP].”

Mr Henry said the Allied Farmers Proposal provides a much better structure for the assets to be held in than the Hanover and United companies could have achieved in the foreseeable future given the extremely difficult commercial development property market.

Shareholder Mark Hotchin said he was pleased that Hanover investors have voted to take up the Allied Farmers Proposal.

“This outcome reinforces investors made the right decision last year to vote for the DRP moratorium. It allowed time for options such as this Proposal to become possible.

“Allied Farmers has a good future - it now has a considerable asset base and the time and resources available to achieve much greater value from the assets in the future.

“My immediate focus is to work with the independent directors to ensure the smooth transition of all Hanover assets to Allied Famers.”

Mr Henry thanked investors for their participation at the recent investor meetings held around the country, and in reviewing the Proposal material.

“We wish Allied Farmers well with the next phase of its history,” he said.

ENDS

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