Agria takes control of PGG Wrightson

Friday 15th April 2011

Chinese agricultural companies have taken control of New Zealand rural services company PGG Wrightson.

The bid vehicle Agria (Singapore) Pte today disclosed it had a 50.52% holding. Agria (Singapore) Pte is jointly owned, directly or indirectly, by Beijing-based Agria Corp and New Hope, which is one of China's largest agricultural and food corporations.

Agria said, when disclosing the bid to secure control, that PGG Wrightson's business required restructuring and a refocus on the core agricultural services and technology businesses to achieve its full potential.

Goldman Sachs & Partners acted as financial advisor to Agria and New Hope and the bidder had a pre-bid agreement with 18.3% shareholder Pyne Gould Corp.

PGG Wrightson's history traces back to 1865 and in recent times the company was controlled by Rural Portfolio Investments, a company associated with former Fonterra chief executive Craig Norgate and the Dunedin-based McConnon family.

A period of corporate activity ensued but investor wealth was destroyed by unsuccessful deals.

At the end of 2009 PGG Wrightson had a rights issue and Agria Corp acquired a 19% stake.

NZPA

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