PGG Wrightson in dark about Zuellig intentions

Thursday 10th March 2011 1 Comment

Rural services firm PGG Wrightson has met Hong Kong investment company Zuellig Group but says it is in the dark about what its intentions are.

Agria (Singapore) Pte Ltd is bidding to increase its stake in PGG Wrightson from 19.01% to 50.01% by paying 60 cents a share. The offer is open until April 15.

Zuellig Group has said it was looking at a number of options for investment in PGG Wrightson, including potentially a strong cornerstone shareholding position.

PGG Wrightson spokesman Maurice Noone said his company met Zuellig late last week.

"They just explained a bit about themselves and talked generally about what they thought PGG Wrightson was all about. There was no real specifics," Noone said.

He said he contacted the company again today after Zuellig was reported saying the ball was in PGG Wrightson's court.

Noon said the ball was in Zuellig's court and he had asked them to let him know what they were doing. "I'm none the wiser," he said.

Zuellig is not on PGG Wrighston's share register. Investors only have to disclose stakes of 5% or more. Zuellig invests in pharmacy and agri businesses. Its investments have turnover of US$12 billion (NZ$16 billion).

NZPA

Comments from our readers

On 11 March 2011 at 10:14 am eriq said:

PGG's board just come off as hopeless amateurs. They can't run the company properly and don't seem to be able to manage a takeover or merger. Bring in a M&A expert like Goldman Sachs so shareholder value can be maximized. The board is just running the stock price lower and lower. This is the era of food inflation. Take advantage of it. Useless,