Sharechat Logo

Speirs investors approve sale to Allied

Tuesday 26th August 2008

Text too small?
Speirs Group shareholders unanimously approved the sale of the company's finance unit to Allied Farmers for $5.6 million in cash and stock.

Allied will issue $2.5 million of new shares at $1.35 apiece and stump up $3 million of cash for the purchase, with $2 million reinvested in Allied Nationwide Finance perpetual bonds. Allied stock last traded at $1.27. Speirs last traded at 35 cents on July 22.

Speirs Group posted a $3.2 million loss last year though its Speirs Finance unit lifted its contribution to the group after a year-earlier loss. Total assets fell to $262 million in the year ended March 31 from $297 million, mainly reflecting a decline in loans and advances.

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    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Speirs Foods appoints new GM
NZ fish-oil encapsulation technology set to ramp up from Speirs Group's Marton base