Allied Farmers taps professional investor to bolster its balance sheet
Allied Farmers, the rural services and finance group, will bolster its balance sheet this month, having secured a large professional investor to pony up some $7 million of additional capital.
The cash will give the company space to "consolidate and restructure" its business after it was forced to separate earlier this year amid a significant downturn in trading, according to chairman John Loughlin, though he was unwilling to divulge more information about the plans.
The proceeds will go towards strengthening Allied Farmers' position. Allied Farmers posted a $35 million loss in the year through June 30 from a $2.4 million profit a year earlier after it had to write down the value of its finance unit by about $21 million.
In July, the company split off its rural business in preparation for the declining strength of its loan book, and raised $6.3 million to pay for the restructure.
"It's a difficult environment to be trading in, and we took the view that it would be prudent to look after our shareholders," Loughlin told BusinessWire.
The initial raising covered the cost to create Allied Farmers Rural, the rural services entity and this new raising will be used for new spending, he said. The form of investment is yet to be finalised. The company hinted it may require shareholder approval and could involve a shareholder purchase plan.
Further announcements will be made this month, including the structure of the capital raising. The shares, which trade infrequently, closed at 28 cents yesterday, and have slumped 74% in the past year.
Businesswire.co.nz
Comments from our readers
No comments yet Add your comment:
Related News
Allied Farmers gains 2-week extension on filing results Allied Farmers to renegotiate bank facility in Nationwide fall-out Loughlin steps down as Allied Farmers chairman Allied Finance misses repayment of debentures Allied Nationwide rating cut Allied Farmers shelves crucial capital raising after finance unit deed breach Allied Farmers to raise $19.3m Allied Farmers gains further extension to Westpac facility Allied Farmers confirms sale of Five Mile Allied Farmers gets debt extension
NZX Annoucements for ALF
|
|
Allied Farmers Limited Ordinary Shares
Current quote:
ALF $0.03 +0.1
Quotes delayed 20 minutes
Price when article published: $0.28
Previous News
Sharemarket News By Email
Stock Quote
At a Glance
| NZX 50 Index |
3092.36 |
 |
9.90 |
| S&P/ASX 200 |
4532.70 |
 |
0.00 |
| Dow Jones Industrials |
10320.10 |
 |
50.60 |
Comment & Analysis
|
“
OK, everybody take a deep breath. Underneath all the fog of commentary and arm-waving, a fairly simple thing has happened to South Canterbury Finance today.
Its affairs are in the hands of receivers, as has happened to many a company in corporate history. What makes it special is that it has also triggered the provisions of [...]
”
Pattrick Smellie More »
|
|
|
|


NZX 15 Index
NZX Announcements
|