Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

PGG Wrightson "no comment" on reported possible $600M buyout

PGG Wrightson says "no comment" on report of possible $600M buyout

By Sophie Boot

July 10 (BusinessDesk) - PGG Wrightson says it has no comment on Australian media reporting that ASX-listed agribusiness company Elders is looking to buy it for $600 million.

A column in The Australian says Elders may seek to raise A$300 million via a rights issue to help fund the purchase, with the remainder funded via debt. The PGG Wrightson board "met on Friday to discuss the sale of the business and speculation is building that Elders has already been told that it is the preferred bidder", The Australian reported.

PGG Wrightson said it "does not have any comment on this speculation", while Elders has issued a statement to the ASX, stating that it has "not made any definitive proposal" to acquire Wrightson and it "evaluates all possible opportunities against a range of factors and will only pursue acquisitions that make compelling strategic and financial sense for our shareholders."

The rural services firm is indirectly controlled by China's Agria Corp, which owns a 50.2 percent stake via Agria (Singapore), but that stake has come under review by the Overseas Investment Office over whether it still meets the regulator's 'good character' test after being delisted from the New York Stock Exchange last year. It has been previously reported that Agria wants to sell its stake in Wrightson, and Credit Suisse (Australia) and First NZ Capital are running the sale process, having been previously hired to run a strategic review of the business.

Wrightson shares recently traded at 65 cents and have risen 5 percent this year.

(BusinessDesk)


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

$7.5 Billion Surplus: Government Accounts "Show Strong Economy"

“The surplus and low levels of debt show the economy is in good shape. This allows the Government to spend more on infrastructure and make record investments in health and education,” Grant Robertson says. More>>

ALSO:

New OIO Application Trumps Judicial Review: OceanaGold Cleared To Buy Land For Waihi Tailings Expansion

In a surprise turnaround, the government has given OceanaGold a greenlight to buy land to expand its Waihi mine after the application was previously turned down by Land Information Minister Eugenie Sage. More>>

ALSO:

Christchurch Rebuild: Fletcher Sued For $7.5m Over Justice Precinct

Fletcher Building is being sued for $7.5 million by utilities contractor Electrix, one of the subcontractors on the Christchurch Justice and Emergency Services Precinct. More>>

Three New Drugs: PHARMAC Signs Bundle Deal For More Cancer Medicines

420 New Zealanders with lung cancer, breast cancer, multiple sclerosis and respiratory disease will benefit each year from a bundle deal PHARMAC has finalised with a medicine supplier. More>>

ALSO:

"Levels Playing Field": Government Responds To Electricity Price Review

The changes announced today include: • Supporting new and independent retailers by requiring the big power companies to sell into the wholesale market at affordable rates. • Extending discount rates to all customers • A pilot scheme to help customers who have not switched power providers before to shop around for better deals... More>>

ALSO: