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- Release Date: 21/12/12 16:55
- Summary: ASSET: ALF: Sale of Assets to Crown Asset Management Limited
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ALF
21/12/2012 14:55
ASSET
REL: 1455 HRS Allied Farmers Limited
ASSET: ALF: Sale of Assets to Crown Asset Management Limited
[email protected]
21 December 2012
Sale of Assets to Crown Asset Management Limited/ NZX Waiver
Allied Farmers Limited (ALF) is pleased to announce that it has today agreed
to sell the majority of the remaining ex-Hanover Finance Limited and
ex-United Finance Limited property and loan assets (the "Transferred Assets")
to Crown Asset Management Limited ("CAML"). CAML is the Crown entity that
acquired the remaining assets of NFA Limited (in Receivership and Liquidation
and formerly the finance arm of ALF called Allied Nationwide Finance Limited)
and is the secured lender to ALF.*
As previously indicated to shareholders, ALF is in the process of selling
down the majority of its remaining assets in order to repay debt. The
Transferred Assets are owned by ALF's asset management arm, Allied Farmers
Investments Limited, a wholly owned subsidiary. The Transferred Assets will
be transferred at their book value of $13.5 million, of which sections at
Jacks Point in Queenstown comprise $11.3 million. All of the proceeds of the
sale will be used to repay debt to secured lenders. Settlement is due to take
place today.
ALF is very pleased with the sale of the Transferred Assets at book value as
it removes the significant holding costs associated with those assets and
enables a significant reduction in debt. Furthermore, ALF will benefit from a
new Funding Facility that CAML has agreed to provide contemporaneously with
the purchase of the Transferred Assets, and CAML has signaled that it will
consider further, more significant, funding support at the time other assets
are sold.
NZX has granted a waiver from Listing Rule 9.1.1 to enable the transaction to
be concluded on a timely basis. The waiver decision, which provides further
background and information on the transaction, was contemporaneously released
by NZX with this announcement.
*CAML is the secured lender to the ALF Group excluding NZ Farmers Livestock
Limited and its subsidiaries. NZ Farmers Livestock Limited's assets are "ring
fenced" from the security provided by ALF to CAML
End CA:00231570 For:ALF Type:ASSET Time:2012-12-21 14:55:57
