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

 

Wrightson capital return gets shareholder approval

Wrightson capital return gets shareholder approval

By Paul McBeth

July 23 (BusinessDesk) - PGG Wrightson shareholders have again given the rural services firm the thumbs up to a capital return in a tax-efficient way.

Shareholders voted overwhelmingly in favour of a scheme of arrangement to distribute $234 million to investors following the sale of the company's seeds division. Wrightson will undertake a two-for-one share split, followed immediately by a 31 cent payment per share to cancel one of every two shares.

The practical effect of the transaction is that investors will end up with the same number of shares and receive a 31 cent per-share payment, which won't be treated as a dividend for tax purposes.

The resolution attracted 521.3 million shares or 99.95 percent of the votes cast at a special meeting in Christchurch. Just 267,000 votes were against, and 1.6 million abstained.

"Following this endorsement by shareholders we will now make application to the High Court seeking final orders to implement the scheme. Assuming orders are made by the court, we would expect the scheme to be implemented with payment made to shareholders in early August," chair Rodger Finlay said in a statement.

The company has already got initial court orders relating to the scheme.

A second resolution to amend the constitution to comply with new NZX listing rules also passed, with 98.8 percent support.

Wrightson shares were unchanged at 55 cents and have increased 7.8 percent so far this year.

The rural services company always intended to return a portion of the proceeds to its shareholders after booking a $120 million gain on the sale of the division. DLF Seeds paid $413 million for the Wrightson unit and took on $21 million of net debt. Wrightson initially flagged a return of up to $292 million.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Industry Report: Growing Interactive Sector Wants Screen Grants

Introducing a coordinated plan that invests in emerging talent and allows interactive media to access existing screen industry programmes would create hundreds of hi-tech and creative industry jobs. More>>

ALSO:

Ground Rules: Government Moves To Protect Best Growing Land

“Continuing to grow food in the volumes and quality we have come to expect depends on the availability of land and the quality of the soil. Once productive land is built on, we can’t use it for food production, which is why we need to act now.” More>>

ALSO:

Royal Society: Calls For Overhaul Of Gene-Technology Regulations

An expert panel considering the implications of new technologies that allow much more controlled and precise ‘editing’ of genes, has concluded it’s time for an overhaul of the regulations and that there’s an urgent need for wide discussion and debate about gene editing... More>>

ALSO:

Retail: Card Spending Dips In July

Seasonally-adjusted electronic card spending dipped in July by 0.1 percent after being flat in June, according to Stats NZ. Economists had expected a 0.5 percent lift, according to the median in a Bloomberg poll. More>>

ALSO:

Product Stewardship: Govt Takes More Action To Reduce Waste

The Government is proposing a new way to deal with environmentally harmful products before they become waste, including plastic packing and bottles, as part of a wider plan to reduce the amount of rubbish ending up in landfills. More>>

ALSO:

Earnings Update: Fonterra Sees Up To $675m Loss On Writedowns

“While the Co-op’s FY19 underlying earnings range is within the current guidance of 10-15 cents per share, when you take into consideration these likely write-downs, we expect to make a reported loss of $590-675 million this year, which is a 37 to 42 cent loss per share." More>>

ALSO: