Cushing sells W&K stake to Wrightson

Wrightson's attempt to take over Hawke's Bay-based Williams & Kettle took a big leap forward today, with major shareholder Selwyn Cushing accepting the offer.

Sir Selwyn's company H&G Ltd and other interests associated with the Cushing family said today they intend to sell their entire 19.9 per cent shareholding W&K.

Wrightson has also waived all conditions of the offer, which will now become unconditional once it receives 50.1 per cent acceptances.

Wrightson is offering either $4.70 cash or one Wrightson share plus $2.70 cash per Williams & Kettle share. The offer closes on February 28.

Wrightson gained a 19.9 per cent stake in W&K through a stand in the market in September, and in December announced its intention of a full takeover.

In a joint statement today Sir Selwyn and David Cushing said they had thought long and hard before deciding to sell out of the company, which the family has been involved with for more than 20 years.

"However, we believe that rationalisation in the industry is not only inevitable but also very sensible," they said in the statement.

Sir Selwyn urged all W&K shareholders to accept the offer.

W&K's committee of independent directors, which was established to consider the takeover offer, also today recommended shareholders accept the offer.

The directors had earlier urged W&K shareholders to wait and see if a better offer came along. They said in a statement today they had decided to recommend the offer following H&G's acceptance, the waiving of conditions and the absence of any other offer.

Sir Selwyn said in his statement he had been assured W&K's head office in Napier would be retained as the operating centre for the lower North Island region, ensuring a strong Hawke's Bay presence.

"We believe that merging the interests of W&K and Wrightson will result in substantial benefits for farmer and grower clients of both companies by providing more cost effective products and services and by providing a strong platform for new initiatives to enhance client productivity and profitability," the statement said.

H&G will take share and cash option for its 10.6 per cent shareholding while other Cushing entities will take the cash option.

Shares in W&K closed yesterday at $4.65, having ranged between $2.33 and $4.67. Wrightson shares were at $1.86 having ranged between $1.17 and $2.08 over the year.

- NZPA