Shareholders in Allied Farmers have strongly backed a second rescue plan for troubled finance company Hanover.
More than 85% of Allied Farmers' shareholders voted in favour of the $400 million deal at a meeting in Hawera on Tuesday.
The rescue package involves the rural company acquiring Hanover's loan book and that of its subsidiary, United Finance, in exchange for shares.
Allied Farmers believes can get $50 million from Hanover's good loans, but has no idea what it might be able to recover from the substantial bad loans.
Allied Farmers chairperson John Loughlin says he is delighted with the level of support for the deal and the acquisition will help the company become a stronger market player.
However, some shareholders expressed concern that Allied Farmers was deepening its involvement in the risky finance sector at the expense of its main rural services business.
At least 75% of Hanover investors need to vote in favour of the deal at a meeting next week before it can go ahead.
