19 Jul 2010

Allied Farmers in no rush to sell Hanover assets

6:07 am on 19 July 2010

Allied Farmers, says potential buyers are showing increasing interest in some of Hanover's more lucrative assets, but it is still in no rush to sell.

Shares in the troubled rural services company have lost more than three quarters of their value since it took over Hanover's assets in December, and they reached a record low of 3 cents earlier this month.

But the share price picked up slightly last week, after the company announced the unconditional sale of the second stage of its Five Mile property development in Queenstown.

Managing director Rob Alloway will not reveal the purchase price, but says it is near the upper end of its valuation.

And Mr Alloway says he is pleased with the progress being made with sales.

He says he has been pleasantly surprised at the amount of interest in the properties, but he's aware some purchasers have limited available finance.

Meanwhile, Mr Alloway says the company is still considering whether to take legal action against the directors of Hanover, because of what he says are serious breaches of the sale agreement.

Last month Allied Farmers refused to pay $5 million it owed Hanover and cancelled what remained of the agreement.