Party decides against bid for PGG Wrightson

Monday 21st February 2011

A party that had been doing due diligence on PGG Wrigtson has decided against making a takeover offer for the company, which is already subject to a partial bid from shareholder China-based Agria Corp.

In late December, Agria announced a bid for 38.3% of the shares in PGG Wrightson at 60c per share, which would take Agria's shareholding to 50.01%.

Then early this month, PGG Wrightson announced it had agreed to another potential bidder carrying out due diligence.

Today PGG Wrightson said the second party had advised that for strategic reasons specific to itself it did not intend to proceed and make a formal takeover offer.

PGG Wrightson's takeover response committee previously recommended that, in the absence of any better offer, they accept Agria's offer, due to close on April 15.

That recommendation had not changed, the committee said today.

It reiterated that while the Agria offer would have merit for shareholders with a near term focus, or who valued near term certainty, shareholders with longer term investment horizons may conclude the offer undervalued PGG Wrightson's longer term prospects.

NZPA

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