Potential new bidder for PGG Wrightson

Friday 4th February 2011

Farming services company PGG Wrightson, already the target of a partial takeover bid, has received an approach from another party which indicated an interest in a full takeover offer.

Just before Christmas, China-based Agria Corp launched its $141 million partial bid to lift its stake in PGG Wrightson to 50.01% from the 19% it held before the bid.

Today a committee of the PGG Wrightson board said it had agreed to a request from another party to carry out due diligence on the company.

The party had indicated an interest in making a full takeover offer for PGG Wrightson and was a "bona fide potential bidder", the PGG Wrightson committee said.

Given the potential for another offer to emerge, the committee recommended shareholders wait until nearer the close of the Agria offer period - currently April 15 - to make a decision on the Agria partial takeover offer.

"Any takeover situation is dynamic and this means that circumstances could change materially before the nominated offer closing date," the committee said.

PGG Wrightson is to issue its target company statement in response to the Agria offer on Monday.

Should PGG Wrightson sell its finance company?

NZPA

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