Tuesday 26th August 2008
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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.
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