The phrase that comes to mind is;
"Don't buy a pig in a poke."
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Percy - just wondering ... who would be the pig you are here referring here to? PGW? Agria?
If we look at PGW ... I guess yes, I think we have by now established that their indirect majority shareholder (Agria Corporation) might be subject to a different set of what is right and what's wrong than typical Western Companies (who are not subject to Cayman island jurisdiction) ... but than - I am still not sure, how this might effect PGW's operation (unless we assume that the PGW board operates under the same presumptions and lack of responsibilities as the board of their Cayman island based majority owner may or may not do)
As well - yes, dairy (from memory something like 15% of the PGW business) is currently in the doldrums ... but on the other hand - most other parts of the NZ agriculture (fruit, wine, red meat, wool) have this year a bumper year ... e.g. Canterbury had this January more than twice as much rain than the long term average and I see (and hear) the harvesting machines work day and night ...
Question - are you referring in your concerns re PGW to one of both of the above ... or are there as well other issues you think shareholders should be concerned about?
The NBR story is a good read for anyone interested. The takeover proposal of Agria may have implications for PGW. This sentence gives some idea to the article's contents: "If the code did apply, it would require the acquirer to get the approval of the downstream company’s shareholders (eg, PGG Wrightson’s) or complete a takeover of the downstream company."
The meaning of the quote is;"That something is sold or brought without the buyer knowing its true nature or value."
So Agria "carry on" means what to PGW?
Well their history is not exactly something to be proud of if you read Agrainvestor's posts, and would greatly concern me if I held PGW shares.
ps.PGW's exposure to dairying is between 23% and 25%,not 15%.
Percy's right, Dairy has historically been 24% of PGW's business.
Currently 40 cents. Upcoming dividend 1.5 - 2c meaning people are effectively valuing it at 38 - 38.5 cents. As BlackPeter says, sure dairying is down but everything else is up. The El Nino drought hasn't amounted to much. Still in a bit of a downtrend. Watching with interest.
http://www.sharechat.co.nz/article/c...month-low.html
It just goes from bad to worse to even worse still for 24% of their customers. The rumour mill around alleged improprieties with the parent company isn't helping either.
Very tough for shareholders of PGW...just be glad we're not dairy farmers :eek2:
Yes i read their filings. The main reason whay i have invested in AGRIA was the fact that their main asset is in NZ. Therefore i thought that they will not fool us.
And they can laugh about their investors in Agria, and they can laugh about PGW investors. You can do nothing. They have the majority and they will ignore your interest.
If you sell, and PGW price goes lower they will offer you a compensation.
It's really a mess. The chinese are buying companies in the whole world, and they can be sure that everyone treat them fairly.
But if you are an investor in China, they have always a chinese majority shareholder and you righs are ignored.
I have a large investment in CGA. A chinese US listed company. Nett assets above 300 million US$ and Market Cap of 30 million. Today is conference call. They treat us like ****.
IR department is ignoring western investors.
Here are the voting rights of Adam Lai. Difficult to understand:
* Based on a total of 110,766,600 outstanding shares of the Issuer as of December 31, 2013.
Number of shares as to which such person has: Reporting Person Amount Beneficially Owned Percent of Class Sole Power to Vote or Direct the Vote Shared Power to Vote or to Direct the Vote Sole Power to Dispose or to Direct the Disposition of Shared Power to Dispose or to Direct the Disposition of Guanglin Lai 49,534,202(1)(2) 44.72% 49,534,202(1)(2) 0 49,534,202(1)(2) 0 Brothers Capital Limited 48,522,000(2) 43.81 % 48,522,000(2) 0 48,522,000(2) 0 Morgan Finanz Capital Limited 31,076,750(2) 28.06% 31,076,750(2) 0 31,076,750(2) 0
(1) Includes 1,012,202 ordinary shares in the form of American Depositary Shares held by Mr. Guanglin Lai.
(2) Brothers Capital Limited, a British Virgin Islands company, is the record owner of 17,445,250 ordinary shares of the issuer. Morgan Finanz Capital Limited, a British Virgin Islands company, is the record owner of 31,076,750 ordinary shares of the issuer. Morgan Finanz Capital Limited is wholly owned by Brothers Capital Limited, which in turn is wholly owned by Mr. Guanglin Lai. Mr. Guanglin Lai is the sole director of both Brothers Capital Limited and Morgan Finanz Capital Limited. Pursuant to Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), Brothers Capital Limited may be deemed to beneficially own all of the shares held by Morgan Finanz Capital Limited, and Mr. Guanglin Lai may be deemed to beneficially own all of the shares held by Brothers Capital Limited and Morgan Finanz Capital Limited.
Let us know if you have any questions on this. Thanks
Gary Dvorchak, CFA
ICR on behalf of Agria Corporation
There is so much rain here, might have to mow the lawns twice a week or get in a couple of sheep. Where would sp go if world wide mad cow broke out in those overseas countries?:)