In keeping with its relatively low profile Ngai Tahu Holdings cornerstone investment into PGGW is an interesting move, which should ease some of agriculture fears that this important service company and it's intelectual property would be lost to overseas interests.
PGGW's performance and direction has been severely lacking in the last 10 years, and a fresh approach and leadership was needed to right the ship.
New managing director George Gould should focus the company to its core NZ business and return it to the success his forebears were able to achieve, based on service by quality agents and personnel.
Ngai Tahu Holdings has today announced the further diversification of its investment base by taking a cornerstone shareholding in PGG Wrightson ((PGW)) through its investment in a new joint venture reports Scoop.The company has confirmed that it has finalised negotiations with Agria Singapore Pte Ltd (Agria) and Chinese multi-billion dollar company New Hope Group (New Hope) to take an equity stake in Agria’s holding company.
Agria is the vehicle that launched the partial takeover offer for PGW which is New Zealand’s largest rural services company. Ngai Tahu plans to take a $15m cornerstone shareholding in the joint venture vehicle between the Agria group and New Hope, which in turn owns the Agria vehicle that has made the partial takeover offer for PGW.
Agria, has now received conditional acceptances so that once the takeover offer completes it will be the majority shareholder in PGW. In line with the normal requirements of such a transaction, the involvement of Ngai Tahu Holdings is subject to PGW shareholder approval of its participation. Agria was a 19.01% shareholder in PGW and announced on 23 December 2010 that it would make a partial takeover offer for an additional 38.3% of the shares in PGW not already held by Agria for a consideration of NZ$0.60 per share.
Agria has now received conditional acceptances so that with its existing shareholding once the takeover completes (and the remaining conditions are satisfied) it will hold 50.01% of PGW. Ngai Tahu Holdings has full confidence in the Board and management of PGW under the stewardship of new Managing Director George Gould and supports its strategy for growth.
Ngai Tahu Holdings is an inter-generational investor with a particular focus on South Island commercial, tourism, seafood, property and rural ventures.The business is one of New Zealand’s quiet achievers and is committed to supporting growth in the rural sector through global partnerships and relationships as a result of this transaction.
Chairman of Ngai Tahu Holdings, Trevor Burt says “Ngai Tahu Holdings believes this proposition further supports the company’s emerging rural strategy which is in its early and trial stage. Ngai Tahu Holdings is working on the development of an environmentally sustainable rural business model that reflects the values of the Ngai Tahu culture operating under the strictest of environmental practices and philosophies.”
Chief Executive Greg Campbell says the stake is less than 2% of Ngai Tahu’s portfolio and creates a number of significant long-term opportunities and relationships – particularly in the Chinese market. Ngai Tahu already has a strong presence in China through its tourism and seafood businesses and this investment will further enhance that strategy.
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