Wrightson allows more time for takeover attempt

Wrightson has extended its takeover bid for Hawkes Bay rural services company Williams & Kettle to March 11.

The offer had been due to close on February 28.

Wrightson, which already has a 40 per cent stake sewn up, looks almost certain to reach its preliminary target of a 50.1 per cent controlling stake.

It is understood that a strong commitment to the original takeover goal - 100 per cent control of Williams & Kettle - was behind the extension.

Wrightson is offering either $4.70 cash or, alternatively, one Wrightson share plus $2.70 cash for each Williams & Kettle share.

On Friday, Wrightson lowered the acceptance threshold at which the deal would go unconditional from 90 per cent to 50.1 per cent.

Also on Friday, cornerstone Williams & Kettle shareholder Sir Selwyn Cushing agreed to sell his 19.9 per cent stake.

Wrightson already had a 19.9 per cent holding it gained through a stand in the market late last year.

With full control, Wrightson would be better able to carry out its merger plans quickly and efficiently.

A consolidation of rural services retail stores is planned by Wrightson.

Shares in Wrightson closed up 4c at $1.94 yesterday. Williams & Kettle shares were unchanged at $4.67.

- additional reporting NZPA