Hanover urges investors to be positive

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Hanover Finance shareholders have been urged to put aside the company's poor performance and any animosity towards the company's directors in voting on a takeover offer by Allied Farmers.

Stock exchange-listed rural services and financial group Allied Farmers hopes to expand and has put an all or nothing offer on the table to swap shares for $396m worth of Hanover's assets.

It would see about 15,000 Hanover investors, owed millions of dollars, receive shares for money invested in the failed property investment company.

Allied Farmers shareholders will meet in Hawera tomorrow to vote on the deal, which will need 50 percent support from its 5200 shareholders to proceed.

The deal will also need 75 percent support from each of Hanover's arms; Hanover Finance, United Finance and Hanover Capital, which will be voted on in Auckland on December 16.

About 250 people attended the Wellington meeting, the third of 10 investor meetings around the country pushing the benefits of the deal.

While some poured scorn on Hanover, most were there to listen to the proposal.

One investor today said Hanover directors should "do the decent thing"and put the company into receivership.

Another was concerned over the status of first ranking debenture holders, who would have no similar position with Allied Farmers' shares.

"Your track record in protecting the interests of secured investors hardly inspires confidence in the recommendations you now make. It is reminiscent of revolving doors and smoking mirrors syndrome."

One elderly woman slammed Hanover and it co-founder Mark Hotchin for not allowing her to withdraw her money last year when her husband needed treatment in America for cancer.

"How callous. You deserve to rot, and I hope you never have a family member go through what I have had to go through."

- NZPA