WELLINGTON, Oct 16 (Reuters) - New Zealand's biggest rural services company PGG Wrightson Ltd said on Friday it would raise NZ$36 million ($26.7 million) through an issue of new shares to China-based Agria Corporation.
The companies said Agria would become a cornerstone shareholder with the share issue equating to a 13 percent stake in PGG Wrightson.
The new shares are being sold at NZ$0.88 each, which compares with PGG Wrightson's last traded price of NZ$0.65 before it had been placed on a trading halt. At its full year result on Aug 27 PGG Wrightson said it was looking at possible asset sales and equity raising, after being close to breaching its banking covenants at the end of the financial year to June 30 2009. It reported a full year loss for the year of NZ$66.4 million. ($1=NZ$1.35)
((Wellington newsroom tel +64 4 471-4234, fax +64 4 473-6212
wellington.newsroom@reuters.com)) Keywords: PGGWRIGHTSON/ (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The companies said Agria would become a cornerstone shareholder with the share issue equating to a 13 percent stake in PGG Wrightson.
The new shares are being sold at NZ$0.88 each, which compares with PGG Wrightson's last traded price of NZ$0.65 before it had been placed on a trading halt. At its full year result on Aug 27 PGG Wrightson said it was looking at possible asset sales and equity raising, after being close to breaching its banking covenants at the end of the financial year to June 30 2009. It reported a full year loss for the year of NZ$66.4 million. ($1=NZ$1.35)
((Wellington newsroom tel +64 4 471-4234, fax +64 4 473-6212
wellington.newsroom@reuters.com)) Keywords: PGGWRIGHTSON/ (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
