Allied wraps up Prime takeover

Hawera-based Allied Farmers has wrapped up its takeover of Prime Finance with an announcement today it has crossed the critical 90 per cent threshold.

Allied said it held 91.6 per cent of Prime and, under takeover rules, was in a position to compulsorily acquire the remaining minority holdings.

The $2.80-per-share offer was launched on May 8 after Allied entered a conditional lock-up agreement to buy 60.09 per cent of the company.

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

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

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

- NZPA