10 Feb 2010

No plans to buy back GPG stake in Allied Farmers - Gibbs

10:41 am on 10 February 2010

Guiness Peat Group director Tony Gibbs says he has no plans to buy back the company's share in Allied Farmers - even though another company he chairs, is on the lookout for acqusitions.

Tower has a $100 million war chest to fund new purchases this year.

But Mr Gibbs, who is chair of Tower, says he definitely won't be looking at buying a stake in Allied Farmers.

GPG sold its entire 4% stake in Allied Farmers just before its deal to acquire Hanover Finance's loan book was approved by its investors.

At the time, Mr Gibbs says he considered putting in a bid for Hanover's loan book to rival Allied's, but decided against it because it was impossible to put a value on it, describing it as "a pile of custard".

Mr Gibbs says he's still not convinced it's a good deal.