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Hanover Finance - Source: ONE News -
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Guinness Peat Group (GPG) says it did look at Hanover Finance but decided against making a rival bid to that from Allied Farmers.
Last month listed rural services and finance company Allied Farmers proposed buying the finance assets of Hanover and subsidiary United Finance, in a deal worth about $400 million.
For all intents and purposes the proposal from Allied Farmers is a back door listing of Hanover.
Debt instruments of Hanover would be converted to equity in Allied Farmers, with Hanover investors owning 97% of Allied Farmers at completion of the proposed transaction.
The New Zealand Herald on Tuesday reported GPG's New Zealand boss Tony Gibbs as confirming his company had taken a hard look at Hanover.
"We've had a very good look at this. I've got a file of assembled material and opinion that looks about three inches thick...and it's the end of it for us. I'm not sure anyone can value the thing at this point in time," Gibbs said.
"GPG is definitely not interested."
The Dominion Post reported Gibbs saying that any deal to take on Hanover's assets was akin to "taking a lump of custard from one plate and putting it on another" because no one could know their true worth.
A report by corporate advisory firm Grant Samuel on the Allied Farmers proposal said it was superior to the status quo.
An alternative cash offer for Hanover was a remote possibility, and it were to eventuate from another party it would be at a substantial discount to the current book value, the Grant Samuel report said.
Allied Farmers shareholders are to vote on the proposal on December 8 with a 50% hurdle for approval and Hanover investors vote with a 75% hurdle for approval in each class of investor.
