21 Dec 2009

Allied Farmers board to discuss loan books

7:02 am on 21 December 2009

Allied Farmers' board is holding a special strategic meeting in Auckland on Tuesday to discuss the loan books it has just bought from Hanover and United Finance.

The deal, worth nearly $400 million, was finalised on Friday, and Hanover investors will receive their allocated shares in Allied Farmers in the mail this week.

Allied Farmers managing director Rob Alloway says the group's three-year strategy will be discussed, and shareholders will be updated on it soon.

He says there is a great deal of speculation about the possible value of shares, but only a handful of people know anything about the Hanover and United Finance loan books.

Mr Alloway says that in the next four to six weeks he expects to appoint a fund manager to manage the underperforming assets taken out of Hanover and United Finance's loan books.

He himself will manage the distressed fund in the meantime.