PGGW "still a NZ Inc story"

PGG Wrightson would remain a "NZ Inc story" despite a Chinese company scooping up a 13 per cent stake in the agricultural services firm, an analyst says. But opponents believe Wrightson's decision to sell $36 million of new shares to young Chinese agriculture company Agria Corporation is another case of NZ's production sector potentially falling into foreign hands reports Stuff. The sale announced on Friday is the first part of a larger equity raising plan in response to demands from Wrightson's bankers to repay $200m of debt by March. Forsyth Barr head of research Rob Mercer said NZ's point of difference globally was its agricultural, assets-rich economy which was attractive to Asian investors such as Agria. Two large NZ shareholders, interests associated with businessman Craig Norgate and Dunedin's McConnon family and PGGC together own nearly 49 % of Wrightson."This is still a NZ Inc story, with a positive long term future" despite Wrightson being caught out with too much debt at a time of falling commodity prices and an economic downturn, Mr Mercer said. Wrightson and Agria plan to jointly develop and internationally commercialise seed cultivars, develop livestock trade to China from NZ , Australia and South America, and use Wrightson's expertise to establish livestock trading systems in China. Farmers were unconcerned by a foreign investor buying into the 150-year old company. Fed Farmers president Don Nicholson said Wrightson could have taken their intellectual property in animal and seed development overseas at any time.