9 Dec 2009

Dividend prospects expected to rise if Hanover assets taken over

1:35 pm on 9 December 2009

Allied Farmers says it will be able to pay a dividend to shareholders substantially quicker if it takes on Hanover's assets.

A proposal for the rural finance and service company to take over the troubled loanbooks of Hanover Finance and its subsidiary United Finance, in exchange for issuing new shares, won the support of more than 85% of Allied Farmers investors on Tuesday.

Hanover investors will vote on the $400 million deal next week.

Allied Farmers chairman John Loughlin says directors will need to study the assets and loans very closely before knowing when a dividend can be paid, but he's hopeful it will happen.