Allied Farmers plans NZ$7.5 mln share issue to pay for Speirs

Allied Farmers said it planned to raise up to NZ$7.5 million through a renounceable rights issue of new shares to its existing shareholders to refinance arrangements relating to its acquisition of Speirs Finance last year. Each existing shareholder in Allied Farmers will be eligible to buy 6 shares for every seven they own on April 22. The shares will cost 40 cents per share. Shares last traded at 65 cents a share, up from a low of just below 50 cents in March, and down from NZ$1.40 in June 2008. Allied Farmers bought Speirs Finance for NZ$5.6 million in mid 2008.