Allied Farmers needed 75 percent of all four Hanover investor groups at a vote in Auckland yesterday to support its offer of shares in the company for the deal to proceed and only squeaked in with 75.45 percent for the largest group, secured debenture holders, despite some vigorous pleadings at the meeting that people should vote for receivership.
"To be honest I worry more about what we buy than what we don't buy and I'm a lot more worried now than I was before the vote," Mr Alloway said after the vote.
"We have a very long, hard road ahead of us to fulfil all the promises we've made to investors and we've pledged to those investors to do our very, very best," he said.
"I'm very confident in the future of our finance business. We've been around for 30 years now, it's been through perhaps the toughest time that the finance industry's ever seen in the world and this only serves to strengthen it further."
Allied Farmers had offered shares which would add up to 78c for every $1 invested by Hanover secured debenture holders, 8c more than they were told to expect under the Hanover debt restructure plan (DRP).
Hanover director Des Hammond said he was delighted investors had supported the proposal.
"It's a substantial majority, 75 percent," he said.
"I think the investors have considered it carefully, it was their vote, they've made their decision and the transaction will now give them a new opportunity."
Hanover principal Mark Hotchin said the deal was the best opportunity for investors.
He said there had been a lot of misinformation about the deal and about his role but he was glad emotion didn't cloud the thoughts of too many investors.
"I think some did, but ultimately the logic of the deal I think stood out and it's a better platform, it's a better way forward and I think the mums and dads will be better off for it."
Many of Hanover's elderly investors told yesterday's meeting they would have preferred the company to go into receivership as the best way to get money back as they were fearful of Allied Farmers shares plummeting.
But Mr Hotchin said this deal still gave them the option of having shares they could cash in now rather than at a later date.
"I think it's reasonably obvious there will be an overhang in the market. I think everybody's expecting some short term dip and hopefully some medium term stability, and if Rob does the job we think he will hopefully there'll be some growth."
Allied Farmers hopes the new shares will be issued on Friday and will make an announcement about when shares can be traded once that date is confirmed.
