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09-01-2011, 06:25 PM
#1491
The Chinese are only after the seeds business.I would not be surprised to see them out of rural service business.Without financing customers you are not in the business.
I had a laugh as a couple of weeks ago the Press reported PGC was looking to buy PGW finance.It makes good sense for "THE BANK" to buy PGW finance.
I enjoyed your yeah right comment winner 69.About right I would think.No chinese walls here.?
Last edited by percy; 09-01-2011 at 06:32 PM.
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09-01-2011, 07:53 PM
#1492
I heard a while ago (probably 2-3 months) that PGW were looking to sell their finance division - but took this as pub talk. But isn't it where they make most of their money??
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09-01-2011, 08:51 PM
#1493
Originally Posted by Sideshow Bob
But isn't (the finance division) where they make most of their money??
p50 A/R2010: Profit From Continuing Operations FY2010
Merchandising $6.0m, Livestock $5.6m, Finance $8.9m, Other Agriservices -$7.6m, Agritech $11.2m, Corporate -$0.8m
Take away Finance and PGW profit drops from $24.3m to $15.4m, assuming no synergical cross divisional effects.
SNOOPY
Last edited by Snoopy; 09-01-2011 at 09:01 PM.
Watch out for the most persistent and dangerous version of Covid-19: B.S.24/7
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09-01-2011, 09:42 PM
#1494
For the sake of PGW shareholders - I'm not one - it's to be hoped that there are still a few PGW executives who remember the mistake they made several years ago in selling their then Finance division to Rabobank, only to discover that this loosened - and in some cases severed links with a lot of farmers and gave Rabobank the start they needed in becoming a strong competitor in rural finance.
They wouldn't make that mistake again, would they?
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09-01-2011, 10:15 PM
#1495
Originally Posted by macduffy
For the sake of PGW shareholders - I'm not one - it's to be hoped that there are still a few PGW executives who remember the mistake they made several years ago in selling their then Finance division to Rabobank, only to discover that this loosened - and in some cases severed links with a lot of farmers and gave Rabobank the start they needed in becoming a strong competitor in rural finance.
They wouldn't make that mistake again, would they?
the Chinese need the seeds business.Nothing else.
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10-01-2011, 08:35 AM
#1496
Just as PGW was put together from a series of mergers and acquisitions, it will be dismantled via a series of divestments.
Watch the value emerge as assets and operations are divested - we have seen NZS sold, next on the block will be PGW Finance and then the overseas operations etc.
Don't make the mistake of thinking that the Chinese are dumb investors - to date they have certainly shown the Japanese how NOT to invest - eg. Nufarm.
They are also giving the Australians a good run for their money :http://mychinaviews.com/2010/12/asse...ells-in-perth/
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10-01-2011, 09:16 AM
#1497
Management concerned with mounting debt. Selling assets to pay down debt maybe their only option. It's all part of a shrinking businesses cycle.
Last edited by h2so4; 10-01-2011 at 09:19 AM.
h2
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10-01-2011, 10:04 AM
#1498
Member
Don' get me wrong, I don't want the finance business sold, however rural finance is not wha it used to be. Once upon a time everyone had seasonal finance from their suppliers, these days most farmers work wih a large bank overdraft at suprisingly compeitive rates to keep things simple. Most the people using wrightsons etc for seasonal type finance now are the ones whose od is maxed.
Financing herds and land and bulding is sill profitable but hardley essential to wrightsons business, they will only really pick up cusomers who fail bank lending criteria. I'm no longer of the view that a finance business is still essential to a rural services operation, however it is sill a well run profitablefinance unit and I would prefer them to keep it.
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10-01-2011, 10:48 AM
#1499
My comment was general. I do not have the specifics you want.
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10-01-2011, 10:56 AM
#1500
Originally Posted by h2so4
My comment was general. I do not have the specifics you want.
It is inappropriate to make a general statement when you do not know the level of debt that PGW has and how a sale of PGW Finance could potentially wipe off the debt.
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