Yes, I meant 73c. and I was not being too serious about the 40c
What do you think the residual business will be worth? They will have less debt and hopefully while be able to grow the remaining parts of the business.
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Yes, I meant 73c. and I was not being too serious about the 40c
What do you think the residual business will be worth? They will have less debt and hopefully while be able to grow the remaining parts of the business.
Settlement of Seed and Grain transaction
1/5/2019, 11:33 am TRANSACT PGG Wrightson Limited (PGW) has today completed settlement of the sale of its Seed and Grain business (PGW Seeds) to Danish based DLF Seeds A/S.
Incoming PGW Chair, Rodger Finlay said “It was very positive news to have completed settlement after a lot of hard work since the deal was announced in August last year. The transaction would deliver significant value for PGW stakeholders while also enabling the PGW Seeds business to benefit from being part of the international DLF Seeds operation.”
Mr Finlay said “The Board wished to acknowledge and thank the staff of the Seed and Grain business for their immense contributions over many years and looked forward to their continued close working relationship with PGW’s Rural Servicing business under the ongoing strategic distribution relationship. With settlement complete, the immediate focus would now turn to ensuring a smooth transition to separate the business structures.”
“Following receipt of the NZ$426 million purchase price (inclusive of interest), PGW has paid off its bank debt in the interim while the Board continues to assess options for the capital return to shareholders. With completion of the transaction now behind us this is a priority. The Board expects it will soon be in a position to make a recommendation to shareholders regarding the proposed capital return. This would allow PGW to reset its debt position and recalibrate its corporate operations for the Rural Servicing business going forward.” Mr Finlay said.
For all media enquiries please contact
Linda Chalmers
Group Communications and Brand Manager
PGG Wrightson Ltd
Mobile: +64 27 405
Ah, to be a fly on the wall as the board discusses the quantum of the capital repayment, and what is likely to happen with the Agria's stake after the capital repayment.
Agria will be pushing for maximum capital repayment - $292m or 39c per share. as it is obviously desperate to get the banks off its back & wants to have funds available for its owner to pursue other interests now that its goal of creating a global rural servicing empire has unraveled in a pretty spectacular fashion.
As still the biggest shareholder in PGW, Agria is likely to get its way and if it comes to a vote, other long suffering minorities are going to side with Agria.
Suppose it doesn’t matter about the earnings guidance downgrade seeing we are going to get 31 cents back
http://nzx-prod-s7fsd7f98s.s3-websit...292/299541.pdf
Looks like Agria didn't quite get their wish. 31cps still represents a return of $232m though. But there is still $60m that theoretically could have been returned that will now be used in the restructure of the business. If I was a high paid PGW exec I think I would be fighting to be made redundant to get my share of that pie. Will Ian Glasson having brought his family to Christchurch be staying on our shores so that family life is not disrupted again? I guess so because he may need to work through the eight years that remain in his employment contract.
"(Ian will )assist with a short transition and handover through to the end of his contract.”
'Short' is of course a relative term, and with PGW tracing their roots back well over 100 years, eight years is a mere drip in the corporate evolutionary bucket.
The board has a history of very generous employment contracts with former CEO Tim Miles, I think, still just on the payroll as he winds down his own ten year employment contract term.
Stephen Guerin looks to be a good choice as the new CEO, with retail being such an important part of PGW going forwards.
SNOOPY
A very positive announcement.
31cents ps capital return leaves a bit in the kitty.
Stephen Guerin looks to be the right person.
Good board appointments,capital return,and good management means PGW should be a good steady performer,capable of paying reasonable divies.
Snoops ..you forgot that they will still essentially be funding all those pension payments as well.
Some probably worked for Wrightson Bloodstock year’s ago .....remember them?
[QUOTE=greater fool;758426]"Proposed Capital Distribution to Shareholders
That says it all to me.
31cps.
Interesting what this means - could be like current share price of 53 cents they’d buy 58% of your shares (the pro-rated bit) at the 53 cents (still giving you the equivalent of 31 cents per share on all your shares)
But I have no idea
Snoopy will be able to clarify