PGG Wrightson chairman withdraws bid
By Edwin Mitson
The NZX-listed rural and farmer services company, PGG Wrightson, says its chairman has withdrawn his takeover bid for the New York-listed agricultural company, Agria Corporation.
Guanglin "Alan" Lai made his offer to shareholders in January.
Agria indirectly controls 50.22 percent of shares in PGG Wrightson through Agria (Singapore) Limited.
As well as being the chairman of PGG Wrightson, Lai is also the executive chairman of Agria. He offered a premium of 14.3 percent to the Agria share price on Jan. 27 at US$1.20 per depository share.
The share price peaked at US$1.16 immediately after the announcement but has since traded well below the offer price. They are currently trading at US$1 a share.
The independent directors of PGW, Bruce Irvine, John Nichol and Ronald Seah formed a committee to consider the implications of any Agria takeover. They say they have now been notified that the bid has been withdrawn.
PGW shares rose 1.3 percent to 40 cents. They've fallen 4.8 percent since the start of the year.