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Speirs Group debt-holders approve sale to Allied Farmers

Monday 15th September 2008

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Holders of Speirs Group debt have approved changes to the company's trust deed that will allow the sale of its finance arm to Allied Farmers for $5.6 million in cash and stock.

Under the transaction, debt obligations of Speirs Group will be transferred to Speirs Finance, which will then be sold to Allied.

To fund the acquisition, Allied will issue $2.5 million of new shares at $1.35 apiece and stump up $3 million of cash, with $2 million reinvested in Allied Nationwide Finance perpetual bonds. Allied stock last traded at $1.24 and has fallen 24% this year. Speirs last traded at 60 cents on September 1 on the NZAX market.

After the sale, Speirs Group expects to remain listed on the NZAX, with investments in Speirs Nutritionals, Speirs Foods and its stocks and bonds in Allied Farmers.

Speirs Finance provides financing for plant, machinery and business vehicles. Allied Farmers has rural merchandise, livestock advisory, real estate and non-bank finance interests.

By Jonathan Underhill

  General Finance Advertising    

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