Shares in Allied Farmers continued to tumble on Monday as the market heard the news that Hanover's loan book was worth only a quarter of its acquisition value.

The stock fell by 10% and closed at 6.3 cents.

On Friday, the rural services company reported an independent valuation of the loan book it acquired from Hanover and United Finance in December, had fallen to $87.5 million.

Hanover's assets were worth $396 million when Allied acquired them in December.