Wrightson talks up buyback offer for small shareholders

Rural services company Wrightson today tried to spark some enthusiasm for its share buyback plan by telling small shareholders they could probably sell all their shares into the offer.

The buyback offer to all shareholders, is for Wrightson to buy back one in six shares for a cash price of $1.56 per share.

Wrightson shares closed at $1.57 yesterday.

Craig Norgate-led Rural Portfolio Investments (RPI) is not participating in the buyback, meaning its shareholding would likely increase from 50.01 per cent to approximately 60.03 per cent.

Wrightson's board today said small shareholders who wanted to sell their entire stake into the offer "have every chance of doing so".

"This is the result of a low level of acceptances into the offer so far, and the informal indications from certain major shareholders that they do not intend to participate into the buyback," the company said in a statement to the NZX.

The company said its ability to purchase all of a shareholder's shares would be dependant on the overall level of acceptances received.

Wrightson's board reminded shareholders the offer was conditional on acceptances for no less than 13.7 million shares.

- NZPA