25 Nov 2009

New investor's experience valuable, says Allied

8:24 am on 25 November 2009

The chairman of Allied Farmers says its new Australian investor, Resimac, will help the rural services company build up its finance business, especially if the acquisition of Hanover's loan book is successful.

Resimac has been revealed as the investor behind Allied Farmers' raising of $7 million dollars capital, announced in September.

Resimac is a pioneer of the Australian mortgage-backed securities market and has continued to sell securities backed by mortgages during the turbulent times in financial markets.

Chief executive Warren McLeland will join the board of Allied Nationwide Finance and further board appointments will be made later.

Allied Farmers' chairman John Loughlin said Resimac is enthusiastic about the proposed Hanover deal, and its expertise will valuable.

Under the deal, Allied Farmers would acquire the loan books of Hanover Finance and United Finance, giving investors in those companies shares in exchange for their debentures.

Allied Farmers will hold a special meeting on 8 December to ask shareholders to approve the deal.

Meanwhile the New Zealand Herald has reported that a well-known and trusted company is likely to make a competitive alternative offer to Hanover and United investors within a few days.