11 May 2010

Allied Farmers shares continue to fall

6:14 am on 11 May 2010

Shares in Allied Farmers continued to tumble on Monday as the market absorbed the news that Hanover's loan book was worth only a quarter of its acquisition value.

The stock fell by 10% to close at 6.3 cents.

On Friday, the rural services company said that a recent independent valuation of the loan book it acquired from Hanover and United Finance in December, had fallen a further 17% to $87.5 million.

Hanover's assets were worth $396 million when Allied acquired them in December, but had fallen to $175.5 million by March.

Allied Farmers shares hit an all time low of 5.6 cents in April.