Wrightson - OK?

[craic]

Your comments please folks.
WRI
20/04/2004
TAKEOVER

REL: 0840 HRS Wrightson Limited

TAKEOVER: WRI: Rural Portfolio Investments Lodges Formal Offer Notice

Rural Portfolio Investments Ltd has today lodged the formal notice in respect
of its partial takeover offer for shares in Wrightson Limited with Wrightson.
The takeover notice is accompanied by an offer document, which has been
registered with the Companies Office, for the offer of redeemable preference
shares by Rural Portfolio Investments Securities Limited ("RPI Securities").

As foreshadowed on 6 April, the conditional partial takeover offer is at
$1.50 per Wrightson share, and is for sufficient shares to take Rural
Portfolio Investments' control of voting rights in Wrightson to 50.01
percent.

The Managing Director of Rural Portfolio Investments, Mr Craig Norgate, said
it was expected that the formal offer documents would be despatched to
shareholders as required by the Code in approximately two to three weeks.
They would be accompanied by the offer document relating to redeemable
preference shares in RPI Securities.

The partial takeover offer includes three payment options to suit individual
shareholder needs - cash, redeemable preference shares in RPI Securities, or
a mix of cash and redeemable preference shares.

The redeemable preference shares will also be available to the public
depending on uptake by Wrightson shareholders, who have priority. The issue
of redeemable preference shares is underwritten to $85 million by ABN AMRO
Rothschild, and RPI Securities may accept over-subscriptions up to a further
$15 million. ABN AMRO Craigs and ABN AMRO Rothschild are Joint Lead Managers
to the issue. ABN AMRO Bank NV has also provided a bridge facility of NZ$70m
to facilitate the offer.

Rural Portfolio Investments currently has a shareholding of approximately 13
percent in Wrightson, acquired through purchases on the New Zealand
sharemarket between September and December 2003. Mr Norgate said the company
had been encouraged by the initial reception to the partial takeover offer.
"It is clear to us that the price has been well received by shareholders and
the broking community," he said. "We have structured the offer to provide
shareholders with an opportunity to realise a premium price and, if they wish
to do so, to switch into a fixed-rate investment with an attractive return
and the opportunity to obtain equity linked enhancements on redemption."

Mr Norgate noted that, under the Takeovers Code, shares could be purchased by
Rural Portfolio Investments via the partial takeover offer only if it
received acceptances sufficient to take it to 50.01 percent. He also noted
that the Code prohibited an offeror from purchasing shares in the target
company during a partial takeover offer. This meant that those who wished to
sell Wrightson shares to Rural Portfolio Investments could do so only by
accepting the offer.

The redeemable preference shares in RPI Securities will be in two series:
- Three-year - with an indicative gross dividend (including imputation
credits) of 9% pa
- Five-year - with an indicative gross dividend (including imputation
credits) of 10.5% pa

The indicative gross dividends may be adjusted depending on market conditions
over the takeover offer period. They are based on the intention to pay a
fully imputed dividend. The redeemable preference shares will also carry
redemption premiums based on specified appreciation in the Wrightson share
price.
End CA:00099244 For:WRI Type:TAKEOVER Time:2004-04-20:08:40:38

[willy_wonker]

RD1 + WRI = ?

[wsheridan]

I think you can be fairly sure from this that Wrightson will be paying healthy dividends over the next few years. They will need to for Norgate to finance this offer.

[nelehdine]

Agreed WS ... 10.5% is hardly bargain basement stuff to be borrowing at for 5years ... amazed that with the Mainland connection they couldn't get any cheaper finance than this. Almost like an American style LBO of the 80's !! Michael Milken come back ... all is forgiven !!

[tim23]

When Norgate bought the original lot pre Xmas he said the debt could be supported by the dividend, with the cut in the interim and likely final this is not the case, perhaps he is trying to flush out RD 1 in to making a bid?

[riskandreturn]

This talk of RD1 is confusing me somewhat?

If I am correct in thinking that RD1 is Fonterra then I don't understand how it is in Norgate's interest to get Fonterra to bid at the moment??

Sure this is likely to be a long term scenario but definitely not what Norgate is wanting now.

[tim23]

Well he is going to struggle to get to his 51% as 3 shareholders including RPI hold 40%, RPI hold 13% so need to get 38% out of the 60% in free float so RD 1 is holding the key stake.

[craic]

Yes but. What sort of price is likely to be about in a month or so? Will he increase his offer to pull in stragglers? Will all purchases be conditional on him getting the numbers? And how much will a WRI share be worth after he fails - if he fails. I guess what I want to know is is this an opportunity to sell now at a good price then sit on the cash till the battle is over and the smoke clears and the shares will be back around 120cps. OR are we looking at a determined effort to gain control at any price and the price may go close to 200 cps? I know that some houses value the company at or over the 200 cps.

[nelehdine]

Can't see how he can finance this bid at 150c with any degree of comfort ... 200c would be suicidal !!

Disc: Sold WRI at 148 during the first foray late last year.

[Lawso]

It's Wrightson Ltd, NOT Wrightsons. Sorry, Craic. I'm a pedant, I now, but this annoys me almost as much as when I hear 'Sealords' on radio & TV.

[willy_wonker]

Will CN turn WRI into a mini Fonterra? Back door list rural companies into WRI?

[craic]

Maybe my scenario does not make sense to many of you honest people but after years of dealing with very bent people I weonder what the hidden agenda is? 200cps may be suicide for this fellow but who has their hand up his back?

[neopole]

i agree WW
i can see WRI as a cornerstone of a new rural empire building project.

[kittydashwood]

You mean PGG surely?

[craic]

Why PGG? WRI is bigger. I don't mind as I hold both and WKL

21 Apr 2004 (delayed)
Fundamentals : Pyne Gould Guinness Limited Ordinary Shares

Total Issue 100,022,741

Market Capitalisation $144,032,747 (@ 144)

Full Year Profit 13,331,000.00 (NZD)

Earnings/Share 13.3280 cents

Price/Earnings Ratio 10.8043

NTA/Share 84.2468 (NZD) cents

Dividend/Share 18.6567 (NZD) cents

Dividend Yield 13.0%

Details Enter Security Code:
e.g.TEL (Telecom) NZXASX


Market Date: 21 Apr 2004 (delayed)
Fundamentals : Wrightson Limited Ordinary Shares

Total Issue 139,394,642

Market Capitalisation $197,940,392 (@ 142)

Full Year Profit 17,069,000.00 (NZD)

Earnings/Share 12.5076 cents

Price/Earnings Ratio 11.3531

NTA/Share 81.8722 (NZD) cents

Dividend/Share 15.6716 (NZD) cents

Dividend Yield 11.0%

[kittydashwood]

PGG has a steady record of increasing EPS. WRI is bigger but has more liabilities.
But then I hold both too, for now.

[willy_wonker]

I may sell half of WRI to CN and keep half for future to see what CN will do with WRI. I think he may have bigger plans than most of us give him credit for.

[riskandreturn]

Agree WW. Am surprised many people think this is a short term game for him.

It's common knowledge that he's not intending to get into the corporate game again except his own ventures.

The good oil is that he already has some ex-Fonterra staff by his side...

[tim23]

Kitty, what liabilities? the outfit is debt free or are you talking non-monetary? Thanks Lawso, there is only 1 "S" in Wrightson!

[kittydashwood]

The Genisis stake springs to mind.

[tim23]

They reiterate no term debt, the Genisis stake is not too big to get concerned about.

[craic]

PGG
22/04/2004
GENERAL

REL: 0905 HRS Pyne Gould Guinness Limited

GENERAL: PGG: GM appointed to new wool handling and warehousing company

Wrightson Limited and Pyne Gould Guinness Limited (PGG) have announced that
all conditions of the agreement to transfer their wool handling and
warehousing assets to their new joint venture company have now been met, and
Tim Roulston has been appointed General Manager of New Zealand Wool Handlers
Limited.

PGG Chief Executive Hugh Martyn said that the appointment of the inaugural
General Manager was a tangible step in taking the new Company forward. He
said it was important for both partners that an independent General Manager
with the right skills and experience be appointed to lead the formation of
the new joint venture company

"Tim brings a strong background in the contracting, construction and
transport industries, particularly in the area of operations, logistics and
staff management.

"His skills are well suited to New Zealand Wool Handler's wool handling and
warehousing activities, and its focus on achieving the most efficient wool
handling and warehousing, in order to assist the competitiveness of New
Zealand wool," said Mr Martyn.

Mr Roulston's previous roles have included regional management for Onyx Group
Limited, running his own waste removal company, and more recently, working at
the Port of Lyttelton.

Tim is based at the Christchurch woolstore on Blenheim road.

New Zealand Wool Handlers will initially handle and warehouse 470,000 bales
of wool per annum for Wrightson and PGG.
End CA:00099335 For:PGG Type:GENERAL Time:2004-04-22:09:05:13

[Lawso]

OK ;)

[leanmeanfightingmachine]

I notced that Wrightsons has gone up alot over the last week.
$1.90 odd to $2.10.

After an earlier downgrade in the year it will be interesting to see what todays announcement will have for people.

Little suspect if you ask me.

LMFM




quote:Originally posted by Lawso

OK ;)

[Bling_Bling]

Is a real beauty if you ask me. :)

Have been a WRI support for some time and proven to be a winner. Tahnks for coming.

Disc: shareholder

[leanmeanfightingmachine]

yea love the old inside trading in the last week. stands out like dogs balls.

I had WRI from 80c to 1.70c and got out. Always liked the stock and think they will be at 3-4$ in a few years as they are now so massive now. And forming a monply helps by buying out everyone.

Do think worth holding on to though.

LMFM




quote:Originally posted by Bling_Bling

Is a real beauty if you ask me. :)

Have been a WRI support for some time and proven to be a winner. Tahnks for coming.

Disc: shareholder