Forum Archive Index - November 2003

[mixtrader <mixtrader@clear.net.nz>]

Hi Snoopy

I think you are right but likewise cannot find any supporting data.  I
believe the Rabobank deal is up.

As a WRI shareholder I do not wish to see them re-enter the longterm finance
market because I believe (as sure as God make green apples) that they would
not be able to resist the temptation to attempt to finance big projects on a
long-term basis.

Leave that to the specialist financiers and lets stick to our knitting.

----- Original Message ----- 
From: <tennyson@caverock.net.nz>
To: <sharechat@sharechat.co.nz>
Sent: Wednesday, November 26, 2003 6:13 PM
Subject: Re: [sharechat] WRI - Any comment?


> Hi mixtrader,
>
> >
> >You make some really valid comments but I feel I must question your
> >suggestion that WRI get back into the rural finance sector.
> >
> >They are currently in bed with Rabobank and have had some rather
> >unfortunate experiences in the past with Fletcher Finance and their
> >acquisition of RBFC (later sold to National).
> >
> >I agree with you only as far as seasonal finance provision - they no
> >longer have sufficient backing (aka clout) to be going out into the
> >mortgage finance market,
> >
>
> I take your point mixtrader.  I guess I am suggesting here that rather
> than take on the the banks directly WRI will be lending new money that
> would otherwise have to come from the banks.
>
> As Chris Northmore, Group Manager for Financial Services, put it in
> the latest annual report:
>
> "The company had a long history of experience and success in
> financial services until sellinmg the business to Rabobank in 1998.
> Consistant with the alliance formed with Rabobank, Wrightson began
> to re-enter the market in late 2001 through short term lending to
> selected clients for specific projects.
>
> At 30 June 2003 the company had a $9.5m portfolio of lending related
> to stock purchases and crop inputs.  Rapid growth is expected as new
> finance products are rolled out from now on, including seasonal
> facilities and term loans.  Credit facilities for Rural Supplies purchases
> will also be available, which will give Wrightson a competitive
> advantage in terms of allowing clients to pay for their goods as their
> cash flow permits."
>
> I wasn't suggesting WRI as a serious overall threat to the banks.  I am
> putting them forward as a serious lending alternative in incremental
> projects though.
>
> SNOOPY
>
> PS  I believe the agreement with Rabobank has now expired (five
> years being up).    I could have sworn I read that, but now can't find it
> in the annual report.  Can anyone confirm?
>
>
>
> --
> Message sent by Snoopy
> on Pegasus Mail version 4.02
> ----------------------------------
> "You can tell me I'm wrong twice,
> but that still only makes me wrong once."
>
>
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