KEY POINTS:
Rural services business PGG Wrightson is still trying to fix its stalled deal to buy half of meat processor Silver Fern Farms, while an international banking crisis rolls across Europe.
NZX-listed PGG Wrightson agreed in June to buy half of the co-operative for $220 million in a deal promoted as creating a plate-to-pasture supply chain and a platform for rationalisation.
Silver Fern's farmers last month approved the deal by the narrow margin of 0.6 per cent, with 75.6 per cent in favour.
PGG Wrightson planned to pay for it through a mixture of capital raising and debt, with a $145 million payment planned for last week and $75 million by March.
However, last week a number of banks that committed to fund the deal had been unable to finalise credit approvals in time for the part-settlement. Subsequently, a $78.1 million share placement and a retail offer underwritten to $32 million had to be deferred.
PGG Wrightson chairman Craig Norgate has blamed the extreme financial market conditions and the impact on banks' lending capacity.
Norgate had hoped to know by the end of last week whether the deal - currently one of the biggest in New Zealand - could be saved.
Silver Fern chairman Eoin Garden said the Dunedin-based co-operative was not involved in any negotiations.
"The transaction is current so there's nothing we should do, it's just a matter of the financing mechanisms coming together."
STALLED PLAN
* PGG Wrightson last week was not able to make its first payment towards buying half of Silver Fern Farms.
* Banks were unable to finalise credit in time, the deal stalled and talks continue to try and fix the financing.
