PGG Wrightson is seeking to correct what it calls "speculative, uninformed and often wildly inaccurate" comment being made about the company reports The NZ Herald. The commentary comes after the company said, in its annual result published on August 27, that under a renegotiation of its banking facilities it had agreed to repay $200 million of debt by March 31 next year. "My concern is that this has given rise to extensive comment that is speculative, uninformed and often wildly inaccurate," Smith said in his letter today. Among "clarifications and corrections" he wanted to make, he said PGG Wrightson was not offering to sell businesses that formed part of its operating core. Reports of preliminary discussions with potential buyers for businesses such as Seeds and Fruitfed Supplies were "entirely wrong", Smith said. Rather, the company had said in its results that it would review the sale of selected non-core businesses. "It was also inappropriate in view of the company's underlying performance, including the doubling in operating cash flow, to $52 million, announced as part of the annual results." Smith said there was no basis for concern among the approximately 90,000 farmers who deal with the company. Meanwhile, in a separate development, Craigs Investment Partners said on Friday that it was reducing its target price for PGG Wrightson shares to 74c, down from $1.19, and retained its "hold" recommendation. Until PGG Wrightson could provide greater detail about its funding plans, the likelihood of its success and comfort around the earnings outlook, the stock was likely to remain under pressure, Mr Oxley said.
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