Wrightson mails offer to Williams & Kettle shareholders

Rural services firm Wrightson today mailed its offer to take over target Hawke's Bay-based Williams & Kettle.

The offer, which is conditional on 90 per cent acceptance, is either at 470c a share, or one Wrightson share plus 270c in cash, for each W&K share.

Wrightson chairman Keith Smith said the offer was significantly higher than the price of Williams & Kettle shares before Wrightson secured a 19.9 per cent stake in December.

"Our offer delivers a 52.5 per cent premium to the weighted average share price over the six months prior to Wrightson's stand in the market for Williams & Kettle shares," Mr Smith said.

He urged W&K shareholders to accept the offer.

"There is a realisation by the boards of both companies of the need for consolidation to improve the economics of the industry and to provide a better base for initiatives that will improve the productivity and profitability of clients and customers."

"Williams & Kettle shareholders should look upon this offer as an opportunity to merge the strengths of both companies to drive the future growth and development of the industry and to realise a very full price in doing so," he said.

- NZPA