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Commerce Commission decision welcomed

1 September 2005

Pyne Gould Guinness and Wrightson welcome Commerce Commission decision

Pyne Gould Guinness Limited (PGG) and Wrightson Limited have welcomed the Commerce Commission’s clearance of their merger application.

The Chairman of Pyne Gould Guinness, Mr Bill Baylis, who will be chairman of PGG Wrightson if the merger proceeds, said the decision followed a thorough and comprehensive review by the Commission.

“The next step in the merger process will be the mailing of a detailed information pack to shareholders in both companies, along with formal notices of special shareholder meetings,” Mr Baylis said. “We expect the mailings to occur within the next few days and the shareholder meetings to be held before the end of September.”

Under the Scheme of Arrangement for the merger, approval is needed from shareholders in PGG and Wrightson, and from the courts.

Mr Baylis said the merger proposal was founded on the desire by both companies to deliver a new level of performance for the rural services industry, to help clients respond to competitive pressures.

“The rural servicing sector is currently characterised by fragmentation, duplication and under-investment. At the same time farmer requirements are changing rapidly in response to increasingly demanding and competitive marketplaces.

“The merger is intended to improve the competitiveness of farmers. A strong national rural servicing business will be in a better position to achieve this than a highly fragmented sector,” Mr Baylis said. “PGG Wrightson’s prime purpose will be to make a positive difference to the profitability and sustainability of farmer clients’ businesses.”

ENDS

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