PGC picks up cheque for Wrightson sell-out

Wednesday 4th May 2011

Pyne Gould Corporation (PGC) says it has been paid nearly $40 million by the Chinese firm Agria as part of that company's partial takeover of its rural company PGG Wrightson.

PGC said today that it was paid $39,993,603.60 - representing the sale of 66,656,006 shares - on Monday, after Agria (Singapore) Pte scaled the acceptances for its offer.

Agria sought to buy 38.3% of the shares in PGG Wrightson - in conjunction with Chinese company New Hope and Ngai Tahu Holdings - to take its stake to 50.01%.

The acceptances received would have taken Agria's shareholding to 77.15%.

During the deal, Hamilton-based dairy farmer-owned cooperative Livestock Improvement Corporation (LIC) made a $10 million loan to Agria Singapore, to support the PGG Wrightson agri-tech businesses, of seeds, agri-feeds and grain.

LIC later said it would invest directly in a separate agri-tech business - if one was ever established - rather than in the wider Wrightson operations, which include rural supplies, real estate, livestock and finance.

NZPA

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