Zuellig interest aims to frustrate Agria offer, Wrightson says

By Paul McBeth

(BusinessDesk) – PGG Wrightson Ltd., the rural services company, says Hong Kong investor Zuellig Group’s interest looks like an attempt to foil Chinese seed and agricultural researcher Agria Corp.’s takeover bid.

Zuellig, the owner of local tractor distributor CB Norton Distributers Ltd., yesterday reiterated its interest in buying a 19.9% stake in Wrighton, and outlined a range of other potential transactions, but didn’t offer a price or any other potential terms, the rural services company said in a statement.

“The approach from Zuellig seems to have a primary motivation of frustrating the Agria offer,” Wrightson said. “In the absence of these details and any other material to establish the substance of a potential offer, the independent directors are not able to recommend that PGW shareholders take the possibility of an offer from Zuellig into account when considering their response to the Agria offer.”

Zuellig, which also owns shares in NZX-listed Pharmacybrands Ltd., emerged as a potential bidder last month, saying Wrightson had strong opportunities to add value to its agricultural investments. Senior executive Peter Williams told BusinessDesk earlier this month Wrightson’s much-vaunted seeds business would fit in well with its Malaysia-based animal nutrition business, Gold Coin, which has production facilities in eight countries.

Agria $141 million bid to take a majority stake is backed by China’s New Hope Group. An unnamed bidder, thought to be Canada’s Agrium Inc., dropped out of the running last week.

Wrightson’s shares fell 2% to 50 cents in trading yesterday, and are 10 cents below the Chinese consortium’s 60 cents a share offer.

(BusinessDesk)

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