Allco Hit, Strategic bidders reach preliminary agreement

The two groups are now negotiating an agreement on the sale, according to a statement from Kerry Finnigan, chief executive of Strategic Finance and part of the bidding group.

The deal needs approval from Allco’s shareholders and holders of Strategic Finance’s preference shares, debentures and notes.

Strategic Finance last week suspended redemptions of debentures and notes citing dwindling liquidity.

Redemptions of debentures and notes were halted to protect the integrity of the investments, Finnigan said.

The company had assets of NZ$568 million at June 30, with debentures at NZ$320 million. Strategic's 10.52% perpetual preference shares trade on the NZX debt market.

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By Jonathan Underhill

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