PGG Wrightson share sale raises $27m

Rural Portfolio Investments Securities Ltd, a company associated with businessman Craig Norgate, has sold 6.39 per cent of PGG Wrightson Ltd to raise $27.136 million.

The 48.46 million shares were sold by Rural Portfolio Investments Securities (RPIS) via a stock broker at 56 cents each, according to a notice filed to NZX. Settlement is on April 26.

RPIS is a subsidiary of Rural Portfolio Investments (RPI), which is the investment vehicle of Mr Norgate and McConnon family interests.

The buyer, or buyers, are expected to be revealed in substantial security holder notices in coming days.

AMP Capital Investors filed a notice today indicating a rise in its stake to 6.869 per cent from 5.374 per cent from purchases between December 24 and today.

PGG Wrightson managing director Tim Miles said it was business as usual at the rural services firm and the sale was a matter for the shareholder to comment on.

Rural Portfolio's holding in Wrightson was watered down to about 12.56 per cent from 27 per cent following Wrightson's rights issue last year.

PGG Wrightson shares rose 2c to 58 in afternoon trading.

Businesswire reported earlier this month that Rural Portfolio Capital, a related company, had breached the terms of a trust deed after making its six-monthly dividend payment.

The payment on its redeemable preference shares drained the funds from the company's dividend escrow account, which is required to at all times hold enough to meet its next obligation.

The RPI Group said it expected to complete arrangements to top up the account within the remedy period of 30 days.

- NZPA