Letter to former Hanover Investors

Media Advisory - Letter to former Hanover Investors [Hanover Finance Limited]
Media Advisory
Hanover Finance Limited
Thursday 10 February 2011, 2:00pm

Letter to former Hanover Investors

This week Hanover Finance Limited (Hanover) Chairman David Henry and director Mark Hotchin sent a letter to former Hanover investors outlining concerns about the way Allied Farmers (Allied) has managed the assets transferred to Allied in the debt for equity swap in December 2009.

The letter states that Allied is ignoring the plan they promoted to investors and to Hanover in late 2009. It goes onto argue that Allied appears to have sold assets well below fair value; creating losses and further diminishing the value of the remaining assets that were transferred to Allied.

The Board of Hanover has also observed a very deliberate and orchestrated campaign by Allied to deflect media attention from the issues within Allied and their mismanagement of the Hanover assets.

The Directors are aware that this letter will attract considerable media interest and therefore believed that it was in the public interest to release the letter to the media.

These are complex issues and he believes that investors should be asking serious questions about how Allied has managed these assets, such as how Allied has realised more than $40 million through the “fire-sale” of Hanover assets, yet none of this has resulted in an increase in shareholder value or a dividend distribution to shareholders.

Further information is available at www.hanover.co.nz

ENDS

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