Wrightson shareholders approve rural merger

Wrightson shareholders today gave the big tick to a proposed merger with rural services rival Pyne Gould Guinness (PGG).

At a special meeting in Auckland, 99.82 per cent of shareholders endorsed the proposal.

The merged company will be the country's largest listed rural services company with annual revenue of $1 billion and a market capitalisation of $510 million.

The proposal has Commerce Commission approval and is backed by the major shareholders of both companies -- Craig Norgate's Rural Portfolio Investments, which owns 50.01 per cent of Wrightson, and Pyne Gould Corporation which owns 55.4 per cent of PGG.

PGG shareholders will vote on the merger at a special meeting in Christchurch on Friday.

Wrightson was steady at $2.38 on the news, while PGG shares rose a cent to $2.36.

- NZPA