Both of the major shareholders in PGG Wrightson who have agreed to take part in the company’s capital raising shopped around before settling on the plan.

Pyne Gould Corporation confirmed today it was taking up its full entitlement of 73.5 million shares in PGG Wrightson’s $180 million raising, investing $33 million in the deal.

Despite the long connections between the two companies, the decision to take part was not a matter of sentiment, according to PGC chief executive Jeff Greenslade.

In the lead-up to today’s announcement, Pyne Gould Corp were careful not to publicly commit to taking past in the raising, sticking to the line that it was waiting for details before deciding if a continued investment was economically viable.

Mr Greenslade said today Pyne Gould Corp weighed up the offer against “other opportunities” during that time but was satisfied taking the PGG Wrightson offer was the best deal for shareholders.

Agria Corporation – which will become the largest shareholder in PGG Wrightson after Rural Portfolio Investments scaled back its stake – also said last month it had considered investment in other New Zealand companies before cementing a deal.

Despite Rural Portfolio’s decision to sell much of its share, Mr Greenslade said PGC would be a “supportive and active” shareholder even with the proposed termination of the shareholders agreement with Rural Portfolio and would continue to nominate two directors to the PGG Wrightson board.

PGC’s decision showed a willingness to stand behind the beleaguered rural supplies and services company but Mr Greenslade admitted the major shareholder would take a hit after PGG Wrightson forecasted 2010 earnings of $24 million compared to PGC’s previous estimate of $25.7 million.

“This, together with the dilution effect of the Agria placement, will result in a reduction in forecast share of equity accounted earnings from PGG Wrightson of approximately $1 million.”