While stressing that no counter offer has been made to Allied Farmers' huge $400 Million bid for the financially troubled lender's acquisitions, Hanover Finance Chairman David Henry has revealed that the deal is in the best interest of all the parties involved, while also sharing that it has been supported by the finance company's directors. All the company's secured and unsecured investors, who are scheduled to vote on the matter on December 16 in Auckland, have been recommended to vote for the deal.

"We are of the view that Allied Farmers has the potential to add real value enhancement to the Hanover and United loan and property assets that is not possible under the debt repayment plan currently in place", said Mr. Henry.

While nothing that the Grant Samuel report has commented that a better alternative offer is highly unlikely, Mr. Henry said that Hanover's directors believed that the proposal is "likely to be in the best interests of all classes of investors", and also that the offer was completely fair.

Under the offer made by Allied Farmers, Hanover's secured depositors will be receiving a sum of 78 cents of value, which a substantial improvement on the present estimate of 70 cents under the repayment plan which Hanover recently entered into.

To help investors take a better and informed decision on the day of the poll, all of them have been mailed an Explanatory Memorandum booklet with complete details of the offer, as well as a copy of the Grant Samuel's independent appraisal of the bid.