PGW - PGG Wrightson

[Snoopy]

Don't get me wrong, I don't want the finance business sold, however rural finance is not what 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 still profitable but hardly essential to wrightsons business, they will only really pick up customers 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 profitable finance unit and I would prefer them to keep it.

Thanks for that update on how financing for farmers has changed Doyle. I do think though that there is room for a second tier finance market for farmers who through unanticipated climatic and bank policy changes allows them additional financial flexibility. It wouldl\ be a pity if PGW were no longer in it.

SNOOPY

[Balance]

Answered my own questions ... Big difference! ... Anyone else?

Keep the answers, Belg.

Use the opportunity this week to pick up a few more shares from the uninformed out there before the instos come back next week.

[Snoopy]

If Fin business is sold ... who much will PGW get? ... What impact will that have on their debt mountain? ... How much will their ann interest bill be reduced? ... What effect will this have on the bottom line?

Answered my own questions ... Big difference! ... Anyone else?

You are assuming any sale of the finance division money will remain within PGW Belg. Once Agria gains control they may force PGW to declare a special dividend to effectively finance their controlling acquisition. If that happens there will be no reduction in the debt mountain and no reduction in interest payments. Consequently profitability of PGW will not improve, and may even decline.

SNOOPY

[winner69]

Out for an afternoon walk when meant to be working and met this old geezer who i know but hadn't seen for a while and he started telling me about the unsolicited offer he got in the mail this morning ...... telling me that that taht scamster joker Whimp he had read about in the paper is now using Agria and New Hope as their new name and was trying to get his PGW shares for 60 cents ... cheeky bastard he said and did what the papers had suggested and put a blank piece of paper in the envelope and posted it back ... and was quite proud of his efforts in teaching the bastard a lesson in trying to rip him off

After a good laugh I told him that this offer was kosher and that 60 cents was a pretty good price ....... much to disbelief .......... 'Jesus Christ - last time I looked they were over 2 bucks .... f***** h*** whats the world coming to .... hope they have shot the bastards running the outfit' was part of the tirade

Needed to take him to the local for a whiskey to get over it .... seeing it was only early afternoon winner had a latte

[Beagle]

So I guess you guys are buying up large at 52/53 cents knowing you'll probably get at least 60 cents for some of your shares and hang on for the ride with the rest.

Begs the question, if its such a good situation why is the price where it is ? (Paid 54c a little while back and am somewhat perplexed)

[percy]

Out for an afternoon walk when meant to be working and met this old geezer who i know but hadn't seen for a while and he started telling me about the unsolicited offer he got in the mail this morning ...... telling me that that taht scamster joker Whimp he had read about in the paper is now using Agria and New Hope as their new name and was trying to get his PGW shares for 60 cents ... cheeky bastard he said and did what the papers had suggested and put a blank piece of paper in the envelope and posted it back ... and was quite proud of his efforts in teaching the bastard a lesson in trying to rip him off

After a good laugh I told him that this offer was kosher and that 60 cents was a pretty good price ....... much to disbelief .......... 'Jesus Christ - last time I looked they were over 2 bucks .... f***** h*** whats the world coming to .... hope they have shot the bastards running the outfit' was part of the tirade

Needed to take him to the local for a whiskey to get over it .... seeing it was only early afternoon winner had a latte

Good boy,it is really nice with a dram!!!

[RazorX]

I paid 57 cents for my shares... not sure I should take up the offer? 60c won't be much of a gain so it comes down to "are these shares worth holding on to"? If the price goes above 62c I will make more by holding then selling later. Any suggestions? What are other shareholders on the forum going to do?

[geezy]

I will sell as i participated in the capital raising , avg around 54 , not much of a gain but dont see this company having much improvement in the next 1-2 years , unless Agria takes over management. (Sorry!)

[Blendy]

me too, i bought at 56, but figure might as well cash out and use the money on something else.

[GTM 3442]

I don't think Agria are stupid.

If they're prepared to pay 60c, isn't that an indication that they think they'll be buying something worth more than 60c ?

I can't imagine they're paying 60c in the expectation of getting something worth less.

Surely ?