Sharechat Logo

OIO investigates Agria's 'Good Character' status after NYSE delisting

Wednesday 10th January 2018

Text too small?

The Overseas Investment Office is investigating the "good character" status of China's Agria Corp, PGG Wrightson largest shareholder, after the company was formally delisted from the New York Stock Exchange early last year. 

"We are aware of the situation in the US in relation to Agria (PGG Wrightson's largest shareholder) around its delisting from the New York Stock Exchange and concerns raised by the US Securities and Exchange Commission. The OIO can confirm that we are investigating Agria’s good character.  We are unable to make any further comment at this time," an OIO spokesman said in an emailed response to questions. 

An Agria-led consortium was given a green light to take an initial stake in rural services firm PGG Wrightson in 2009 and a controlling holding in 2011. Under OIO regulation, "consent cannot be granted unless the people who will control the investment are of good character."

Agria, which owns 50.22 percent of PGG Wrightson through Agria (Singapore) Limited, was formally delisted from the New York Stock Exchange on Jan. 2, 2017. Trading was halted when an NYSE investigation "uncovered evidence demonstrating that the company and its management engaged in operations contrary to the public interest and not in keeping with sound public policy," Agria said at the time, citing the NYSE. 

It went on to say the NYSE claimed to have identified evidence indicating that the company, through a top executive and other intermediaries, engaged in trading intended to artificially inflate Agria’s stock price and that it provided incomplete, misleading or false information.

Agria also said it was subpoenaed in December 2015 by the US Securities and Exchange Commission "in connection with a non-public investigation". At the time, it said "the SEC's subpoena is focused on, among other things, Agria's historic and ongoing business operations in China" and that it was cooperating with the investigation.

Wrightson shares fell 3.3 percent to 58 cents but are up 18 percent over the past 12 months. 

(BusinessDesk)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

MARKET CLOSE: NZ shares gain as Trade Me hits record on takeover
NZ dollar higher against USD as jitters about China-US trade tensions recede
Rakon boosts bank funding to meet increased telco demand
Underfunded Overseer farm management tool needs thorough review: Upton
Motor vehicle lending helps UDC lift annual profit 6%
Orr says RBNZ still under-resourced, funding model part of second phase of review
Leading business brokerage firm LINK raises a further NZ$3.45m in capital
Travel insurance and the AirNZ strike
Industrial heat a challenge for cost-effective emissions reduction
Hallenstein Glasson wary of margin squeeze in second half

IRG See IRG research reports