Allied hones in on Prime target

Allied Farmers' takeover of Prime Finance is progressing at a steady clip, with the Hawera-based rural services firm saying today it has secured 72.08 per cent.

Allied launched the $2.80 per share full takeover bid last month after entering a conditional lock-up agreement to buy 60.09 per cent.

Today's substantial shareholder declaration, the second this week, shows it has increased that holding by 11.99 per cent in the past fortnight.

Under New Zealand takeover rules, a company acquiring more than 50.01 per cent must make the same offer to all shareholders.

Independent adviser Horwath Porter Wigglesworth Ltd last week said Allied's offer of $2.80 per share was "fair market value", with Prime's shares valued at between $2.44 and $2.88 per share.

Prime's directors have unanimously recommended shareholders accept the offer, which values the company at $15.6 million.

Shares in Allied last traded on Monday at $2.40 against a year high of $2.94 and a low of $2.00.

- NZPA