PGG ready to repay debt

Rural services company PGG Wrightson has allotted all shares in its rights offer, raising about $180.7 million.

Chairman Keith Smith said it was an excellent result for PGW to have successfully completed the rights issue before the New Year.

"This has allowed PGW to repay $200 million of bank debt and recapitalise the business well ahead of schedule.

"This ... places the business in a strong position looking forward to 2010."

Meanwhile, Rural Portfolio Investments (PRI) and its wholly owned subsidiary Rural Portfolio Investments Securities announced yesterday they held 12.56 per cent of PGG Wrightson. RPI and its subsidiary took up their entitlement to 8.4 million PGW shares under the rights issue at a cost of $3.79 million. Before the rights issue RPI held 27.5 per cent of PGW.

Last month, RPI said it would not subscribe for all the PGW shares it was entitled to and would sell about 58 per cent of its shares to PGW's new cornerstone shareholder, Agria Corporation. One of Agria's conditions in taking up its initial 13 per cent stake in PGW for $36 million was that PGW had raised sufficient funds to repay its $200 million debt facility by March 31.

- NZPA