Ngai Tahu to buy cornerstone stake in PGG Wrightson via Agria JV
Ngai Tahu Holdings is taking a cornerstone stake in PGG Wrightson through a new joint venture vehicle.
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Local Govt
Ngai Tahu Holdings is taking a cornerstone stake in PGG Wrightson (PGW) through investment in a new joint venture with Chinese interests.
The company has finalised negotiations with Agria Singapore and Chinese multi-billion dollar company New Hope Group to take an equity stake in Agria’s holding company.
Agria is the vehicle that launched the partial takeover offer for PGW, which is New Zealand’s largest rural services company.
Ngai Tahu plans to take a $15 million cornerstone shareholding in the joint venture between Agria and New Hope, which in turn owns the Agria vehicle that has made the partial takeover offer for PGW.
Agria has conditional sufficient acceptances of more than 50% so that once the takeover offer is completed it will be the majority shareholder in PGW. The deal is subject to PGW shareholder approval.
Agria was a 19.01% shareholder in PGW and announced on December 23 a partial takeover offer for an additional 38.3% of the shares in PGW not already held by Agria for 60c a share.
Ngai Tahu has a focus on South Island commercial, tourism, seafood, property and rural ventures. Chairman Trevor Burt says the proposition makes good commercial sense and is a further opportunity for the company to diversify its portfolio of investments and build global relationships.
“Ngai Tahu Holdings believes this proposition further supports the company’s emerging rural strategy, which is in its early and trial stage. Ngai Tahu Holdings is working on the development of an environmentally sustainable rural business model that reflects the values of the Ngai Tahu culture operating under the strictest of environmental practices and philosophies,” it says.
Ngai Tahu adds that it has full confidence in the board and management of PGW under managing director George Gould and supports its strategy for growth.
Chief executive Greg Campbell says the stake is less than 2% of Ngai Tahu’s portfolio and creates a number of significant long-term opportunities and relationships – particularly in the Chinese market. Ngai Tahu already has a presence in China through its tourism and seafood businesses and this investment will further enhance that strategy.
NBR staff
Fri, 15 Apr 2011
Fri, 15 Apr 2011
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Ngai Tahu to buy cornerstone stake in PGG Wrightson via Agria JV
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