Wrightson gets new takeover approach

PGG Wrightson chairman Keith Smith Photo / Martin Sykes

PGG Wrightson, which is under partial takeover offer from Agria and New Hope Group of China, has been approached by another group interested in acquiring New Zealand's largest rural services company.

Wrightson considers the new party to be a bona fide potential bidder and has granted its request to undertake due diligence, the company said in statement to the NZX.

The new group has indicated it wants to make a full takeover offer, while Agria and New Hope are seeking only a controlling stake.

It gave no details of the new party. Agria and New Hope have offered 60 cents a share for 235 million shares of Wrightson in a $141 million partial takeover.

Agria already holds 19 per cent and has a 'lock-up' agreement to buy Pyne Gould Corp's 18.3 per cent holding in Wrightson, meaning it only needs to buy around a further 13 per cent to reach its target.

Wrightson formed an independent directors' committee led by chairman John Anderson, Keith Smith and Bill Thomas to assess Agria's offer, which is due to close on April 15.

In today's statement, the committee urged shareholders to wait until nearer the closing date before making a decision "given the potential for another offer to emerge during the Agria offer period."

"Any takeover situation is dynamic and this means that circumstances could change materially before the nominated offer closing date,"
the statement said. There is no certainty that a better bid will emerge, it said.

Wrightson plans to release its target company statement in response to the Agria-New Hope offer on February 7, including a independent adviser's report from Grant Samuel.

Shares of Wrightson last traded at 55 cents and have declined about 11 per cent in the past year.