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PGG Wrightson Ready To Repay Bank Debt After Rights Issue

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, Dec 23 NZPA - Rural services company PGG Wrightson Ltd said today it had allotted all shares in its rights offer, raising about $180.7 million.

Chairman Keith Smith said it was an excellent result for PGW to have successfully completed the rights issue before the New Year.

"This has allowed PGW to repay $200 million of bank debt and recapitalise the business well ahead of schedule. "This is an exceptional outcome for PGW and all stakeholders and places the business in a strong position looking forward to 2010."

Meanwhile, Craig Norgate's Rural Portfolio Investments (PRI) and its wholly owned subsidiary Rural Portfolio Investments Securities announced today they held 12.56 percent of PGG Wrightson.

RPI and its subsidiary took up their entitlement to 8.4 million PGW shares under the rights issue at a cost of $3.79 million. Before the rights issue RPI held 27.5 percent of PGW.

In November, RPI said it would not subscribe for all the PGW shares it was entitled to and would sell about 58 percent of its shares to PGW's new cornerstone shareholder, Beijing-based Agria Corporation at a negotiated price.

One of Agria's conditions in taking up its initial 13 percent stake in PGW for $36 million was that PGW had raised sufficient funds to repay its $200m debt facility by next March 31.

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