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  1. #4396
    Reincarnated Panthera Snow Leopard's Avatar
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    Is the seeds sale still a goer? SP suggests not.
    om mani peme hum

  2. #4397
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    Quote Originally Posted by Snow Leopard View Post
    Is the seeds sale still a goer? SP suggests not.
    The assumption here is that the seeds sale will be 'value accretive' to all shareholders. Have you considered that the seed sale will 'save' Agria from their immediate cash problems, but be negative for shareholders in the medium term? After all former CEO's Mark Dewdney's 'One PGW' strategy was heralded as the way forwards at the time and it is unclear why this would have changed.

    Another possibility is that although the two largest shareholders (Agria and Ngai Tahu) have rearranged their shareholdings to the extent that combined, they still hold the same combined percentage of shares as before the rearrangement exercise, something has changed. The seed business is no longer 'foreign controlled'. So now the Danish takeover means that the seed business will pass into foreign control from ostensibly NZ control. It could be easier for the OIO to turn down such a deal now, whereas before control was simply passing from one foreign owner to another.

    SNOOPY
    Management top tip: Share the responsibility. Change your name by deed-poll to "Someone Else"

  3. #4398
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    Quote Originally Posted by Snoopy View Post
    The assumption here is that the seeds sale will be 'value accretive' to all shareholders. Have you considered that the seed sale will 'save' Agria from their immediate cash problems, but be negative for shareholders in the medium term? After all former CEO's Mark Dewdney's 'One PGW' strategy was heralded as the way forwards at the time and it is unclear why this would have changed.

    Another possibility is that although the two largest shareholders (Agria and Ngai Tahu) have rearranged their shareholdings to the extent that combined, they still hold the same combined percentage of shares as before the rearrangement exercise, something has changed. The seed business is no longer 'foreign controlled'. So now the Danish takeover means that the seed business will pass into foreign control from ostensibly NZ control. It could be easier for the OIO to turn down such a deal now, whereas before control was simply passing from one foreign owner to another.

    SNOOPY
    Actually defination of overseas control = major shareholding of 25% or more (in the absence of a local major 25% or greater stake).

  4. #4399
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    Quote Originally Posted by Balance View Post
    Actually defination of overseas control = major shareholding of 25% or more (in the absence of a local major 25% or greater stake).
    Thanks for that. Does this mean that the New Zealand OIO forcing Agria to reduce its stake' in PGW from 50.2% to 46.6% is just the beginning of a process to reduce the Agria stake to below 25%? If what you are telling us is correct Balance, and I have no reason to doubt you, then it would seem that Agria reducing its stake' in PGW from 50.2% to 46.6% has no real significance - on its own. There could be a book build going on right now to reduce that stake further. That could be a good enough reason alone to explain the soft PGW share price. Furthermore if that is the reason for the PGW share price fall, it doesn't necessarily mean the sale of the seed business is off?

    SNOOPY
    Management top tip: Share the responsibility. Change your name by deed-poll to "Someone Else"

  5. #4400
    Reincarnated Panthera Snow Leopard's Avatar
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    This you Snoopy?

    Notice of Acquisition of Shares


    "PGG Wrightson Limited (PGW) intends to acquire certain shares from one shareholder pursuant to section 112 of the Companies Act 1993 (the Act). The relevant shareholder voted all of their shares in PGW against the special resolution in relation to the sale of all of PGWs shares in PGG Wrightson Seeds Holdings Limited to DLF Seeds A/S, which was approved on 30 October 2018. The relevant shareholder subsequently exercised their minority buy-out rights pursuant to Section 110 of the Act."

    Must admit I did not know we could do this.
    om mani peme hum

  6. #4401
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  7. #4402
    Reincarnated Panthera Snow Leopard's Avatar
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    Quote Originally Posted by kiora View Post
    thanks for that
    om mani peme hum

  8. #4403
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    Quote Originally Posted by Snoopy View Post
    PGW share price on 03/08/2018 before seed business sale deal announced: 64c.

    PGW share price on 06/08/2018 immediately after seed business sale deal announced: 69c.

    PGW share price on Friday 05/10/2018 after the market has had some time to think about the implications of the seed business sale: 61c.

    So as the NZX50 reaches new highs, the value of PGW shares fall. Is this an indication that the market sees this deal as 'value destroying'?
    On 9th January a 'dissenting to the demerger' shareholder received a full payout on their 9,724 PGW shares of 58c each. I am not clear that this is a result of an 'independent valuation' just before the demerger offer was made. But it does seem to confirm that the board does not work for the benefit of all shareholders. This looks like proof, if any was needed, that the seeds division demerger has destroyed shareholder wealth.

    SNOOPY
    Last edited by Snoopy; 10-01-2019 at 02:49 PM.
    Management top tip: Share the responsibility. Change your name by deed-poll to "Someone Else"

  9. #4404
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    Quote Originally Posted by Snoopy View Post
    Thanks for that. Does this mean that the New Zealand OIO forcing Agria to reduce its stake' in PGW from 50.2% to 46.6% is just the beginning of a process to reduce the Agria stake to below 25%? If what you are telling us is correct Balance, and I have no reason to doubt you, then it would seem that Agria reducing its stake' in PGW from 50.2% to 46.6% has no real significance - on its own. There could be a book build going on right now to reduce that stake further. That could be a good enough reason alone to explain the soft PGW share price. Furthermore if that is the reason for the PGW share price fall, it doesn't necessarily mean the sale of the seed business is off?
    At last the OIO news release is on their own website for all to read.

    https://www.linz.govt.nz/.../oio-rea...gria-Singapore

    I wonder what these 'penalty proceedings' will be? Can't the OIO release their own accusations? It does seem odd that the OIO can't comment further on what the charges they are taking to court are.

    SNOOPY
    Last edited by Snoopy; 10-01-2019 at 04:59 PM.
    Management top tip: Share the responsibility. Change your name by deed-poll to "Someone Else"

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