Allied Farmers calls on underwriter

The underwriter of an Allied Farmers rights issue has been called on to take up $1.8 million of shares in the issue.

Rural services and finance group Allied Farmers said it raised a total of $6.3 million in the $7.5 million renounceable rights issue to existing shareholders.

Valid applications were received for $4.2 million, representing 55.5 per cent of the maximum number of shares available, the company said yesterday. In addition, oversubscriptions totalled $320,000.

The underwriter had been called upon to take up a further $1.8 million of shares. Under the offer, shareholders were entitled to six new shares for every seven shares they owned.

The offer was partially underwritten to $6 million by McDouall Stuart Group with McDouall Stuart Securities acting as the organising NZX participant.

Proceeds of the offer are to be used to refinance arrangements relating to the acquisition of Speirs Finance in late September, to reduce core debt and provide additional working capital for rural sector business divisions.