Agria partial takeover of PGG Wrightson unconditional

Tuesday 26th April 2011 1 Comment

Chinese firm Agria's partial takeover of PGG Wrightson, in conjunction with Chinese company New Hope and Ngai Tahu Holdings, has become unconditional and the offer is now closed.

Agria had sought to buy 38.3% of the shares in PGG Wrightson, to take its stake to 50.01%.

Latest information, published on Thursday, was that the acceptances received would take Agria's shareholding to 77.15%. Today Agria said the final determination of the number of shares to be bought from each shareholder who accepted the offer would be made in line with the Takeovers Code and the offer.

The New Zealand Herald reported today that Hamilton-based dairy farmer owned cooperative Livestock Improvement Corporation (LIC) had confirmed it made a $10 million loan to Agria Singapore, the subsidiary that made the partial takeover offer for PGG Wrightson.

LIC chairman Mark Dewdney said LIC's prime strategic interest was in supporting the PGG Wrightson agri-tech businesses, of seeds, agri-feeds and grain.

LIC had no plan to invest directly into the overall businesses of PGG Wrightson - including rural supplies, real estate, livestock and finance.

Dewdney said LIC's intention would only be to invest directly into a separate PGG Wrightson agri-tech business, if such a structure was ever established.

NZPA

Comments from our readers

On 27 April 2011 at 3:42 pm Nan McConnochie said:

Back in February most commentary was in the order for shareholders to hold their decision on accepting until more information came forward. I believe with this information coming forward, ie LIC and Ngai Tahu late involvement we need to have the opportunity to make our vote. No map other than an early forwarning by Tim Miles resignation that something was in the wind, for the suspicious to say something smells. We had promises that the directors would focus on core business. To the benefit of their customers and shareholders or to those who have barely got their feet under the table, and have made a very opportunistic and it seems by the sheer passivity of many shareholders an easy path to an unconditional takeover. I attended the AGM in Chch, and noted the presence of some Ngai Tahu and did check the share registry at that stage. Will this be the order of business, special interests being accommodated. I have no confidence in any shareholder activisism, most farmers already have given up on Wrightys, George Gould has a massive task to get the services improved and selling off the finance business will be the death knell of this side of the company. Pyne Gould would be better to look to SCF loan book. And why didn't they look to get a price of 93c. It will be on my calculations in pggw upcoming results.