The Country
  • The Country home
  • Latest news
  • Audio & podcasts
  • Opinion
  • Dairy farming
  • Sheep & beef farming
  • Rural business
  • Rural technology
  • Rural life
  • Listen on iHeart radio

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • Coast & Country News
  • Opinion
  • Dairy farming
  • Sheep & beef farming
  • Horticulture
  • Animal health
  • Rural business
  • Rural technology
  • Rural life

Media

  • Podcasts
  • Video

Weather

  • Kaitaia
  • Whāngarei
  • Dargaville
  • Auckland
  • Thames
  • Tauranga
  • Hamilton
  • Whakatāne
  • Rotorua
  • Tokoroa
  • Te Kuiti
  • Taumurunui
  • Taupō
  • Gisborne
  • New Plymouth
  • Napier
  • Hastings
  • Dannevirke
  • Whanganui
  • Palmerston North
  • Levin
  • Paraparaumu
  • Masterton
  • Wellington
  • Motueka
  • Nelson
  • Blenheim
  • Westport
  • Reefton
  • Kaikōura
  • Greymouth
  • Hokitika
  • Christchurch
  • Ashburton
  • Timaru
  • Wānaka
  • Oamaru
  • Queenstown
  • Dunedin
  • Gore
  • Invercargill

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / The Country

Text of PGG Wrightson/ Silver Fern Farms announcement:

Herald online
30 Sep, 2008 09:47 PM3 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Text of PGG Wrightson/Silver Fern Farms announcement issued this morning:

KEY POINTS:

Settlement of PGG Wrightson / Silver Fern Farms unable to be completed at this stage.

PGG Wrightson has today advised Silver Fern Farms that it is unable to currently complete the recently approved transaction between the two companies.

The delay will allow time for funding arrangements to be
revisited after changes necessitated by the recent turmoil in global financial markets.

The chairman of PGG Wrightson, Craig Norgate, said a number of banks which had committed to participate in funding the transaction had since been unable to finalise their credit approvals in time for today's part-settlement. "This is entirely a function of the extreme financial market conditions and their impact on banks' lending capacity in the current environment.

The transaction, in which PGG Wrightson is to become a 50 per cent shareholder in Silver Fern Farms, was to be settled in two payments - the first, of $145 million, which was scheduled for today; and the second, of $75 million, due by March 2009. As part of the funding arrangements PGG Wrightson had finalised a $78 million placement of shares to institutional and other investors and a fully underwritten retail share offer of $32 million in extremely difficult market conditions.

With the bank funding approvals unable to be completed by today, the share placement and retail issue have had to be deferred, meaning the completion of the proposal in its current form at the current time is not possible.

Mr Norgate said: "It is unfortunate that market conditions preclude settlement today, and we will revisit the matter with all parties and endeavour to resolve it as quickly as possible," "The delay is likely to be counted in weeks rather than days, but last night's events in the United States - the failure of the administration's bailout proposal to be approved by the House of Representatives and the resulting nosedive on Wall Street - could not have come at a worse time."

Mr Norgate said that today's announcement was extremely disappointing for all those who worked so diligently on bringing it to fruition as well as to those Silver Fern Farms shareholders who supported it so well.

Mr Norgate also noted that the delay in completing the transaction is not in any way a reflection on the trading performance of either company, and would have no impact on their underlying position or funding arrangements. "Both companies have recently reported significant increases in earnings. Conditions in New Zealand's rural sector remain strong and resilient, in line with international demand for New Zealand's high-quality agricultural produce and recent declines in the New Zealand dollar. Both companies continue to perform well."

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.
Save

    Share this article

Latest from The Country

live
The Country

Stay inside: Nelson residents face new threat tonight

11 Jul 08:18 AM
The Country

Go fishing with Scott Barrett and Kaiwaka Clothing

11 Jul 02:40 AM
The Country

The Country: Aaron Cruden on All Blacks v France second test

11 Jul 02:21 AM

From early mornings to easy living

sponsored
Advertisement
Advertise with NZME.

Latest from The Country

Stay inside: Nelson residents face new threat tonight
live

Stay inside: Nelson residents face new threat tonight

11 Jul 08:18 AM

High winds are ramping up.

Go fishing with Scott Barrett and Kaiwaka Clothing

Go fishing with Scott Barrett and Kaiwaka Clothing

11 Jul 02:40 AM
The Country: Aaron Cruden on All Blacks v France second test

The Country: Aaron Cruden on All Blacks v France second test

11 Jul 02:21 AM
Hamish McKay opens up about his dramatic 50kg weight loss

Hamish McKay opens up about his dramatic 50kg weight loss

11 Jul 01:29 AM
Solar bat monitors uncover secrets of Auckland’s night sky
sponsored

Solar bat monitors uncover secrets of Auckland’s night sky

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP