PGW revises earnings guidance as farmer spending drops
Rural trader PGG Wrightson has revised its operating earnings guidance, saying trading conditions have deteriorated since the last market update in February.
PGG Wrightson (PGW) is offloading its seeds business to a Danish company for $421 million.
PGW deputy chairman Trevor Burt says the agreement arose from the strategic review conducted by PGW in recent months.
“The agreement represents a transaction that would deliver significant value to PGW while also enabling the PGW Seeds business to benefit immensely from being part of an impressive global seeds operation,” Burt says.
The buyer, DLF Seeds is a global seeds group. As part of the deal, DLF Seeds will also repay PGW Seeds’ net debt of $18m.
PGW received expressions of interest from a number of parties internationally for the seeds business.
“The DLF Seeds offer was particularly compelling in terms of the value it would deliver to PGW shareholders,” says Burt.
The sale agreement provides for an ongoing close working relationship between PGW and PGW Seeds; a long-term distribution agreement for seed and grain sales.
PGW chief executive Ian Glasson says in New Zealand, PGW and PGW Seeds will continue to work closely together under common branding.
“The PGW Seeds team, who are highly regarded in the industry, are key to the success of the seed and grain business. This team will continue to operate as they do currently, allowing the strong relationship that exists between them and their customers and the PGW team to continue adding value for our clients.”
The sale is subject to approval from PGW shareholders and regulators in NZ, Australia and South America.
PGW is 50.22% owned by Chinese company Agria Corp.
A vet is calling for all animals to be vaccinated against a new strain of leptospirosis (lepto) discovered on New Zealand dairy farms in recent years.
Two major red meat sector projects are getting up to a combined $1.7 million in funding from the New Zealand Meat Board (NZMB).
Angus Barr and Tara Dwyer of The Wandle, Lone Star Farms in Strath Taieri have been named the Regional Supreme Winners at the Otago Ballance Farm Environment Awards in Dunedin.
OPINION: The distress that the politicians and bureaucrats are causing to the people of Wairoa and the wider Tairāwhiti is unforgivable.
Dairy
Rural banker Rabobank is partnering with Food Rescue Kitchen on a new TV series which airs this weekend that aims to shine a light on the real and growing issues of food waste, food poverty and social isolation in New Zealand.