Allied secures 84 per cent of Prime

Hawera-based Allied Farmers is homing in on the 90 per cent threshold that would seal its takeover of Prime Finance.

Allied said in a substantial shareholder notice today it had secured 83.96 per cent of the company.

The takeover is progressing at a steady pace, with Allied netting just under a quarter of Prime since entering a conditional lock-up agreement to buy 60.09 per cent of the company on May 8.

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

Once it crosses 90 per cent it can compulsorily acquire all remaining minority holdings.

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

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

Shares in Allied last traded on Friday at $2.50 against a year high of $2.94 and a low of $2.00.

- NZPA