Strategic sale terminated on adverse credit markets

The unprofitable finance company will remain in the hands of Australian parent after a group comprising managers and directors of Strategic and a unit of BOS International failed to close the deal.

The bidding group, Clarence Investments, was to have paid Allco NZ$25 million cash, transfer 8 million Allco shares and inject NZ$15 million into Strategic by way of subordinated debt securities and buy loans for NZ$50.2 million as part of the acquisition. BOS International would increase its debt facilities to the company to NZ$150 million from NZ$100 million.

Shares of Allco have slumped 99% in the past 12 months and last traded at 1.7 Australian cents.

By Jonathan Underhill

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