PGW - PGG Wrightson

[Agrarinvestor]

Vague, or otherwise... they're not fighting against them.

Sorry, for asking. Do you have read through the accusations and agree that these accusation are very vague?

The accusation from the NYSE was, that they manipulated the stockprice during the last months. This was, that is for sure, not true.
I have watched every day for volume and checked how many shares were short selled. We have seen manipulation from short sellers.
Always during the last minutes someone sold a few shares. I have the impression that this is constructed, that someone has misinformed the NYSE.
Very difficult to understand what really has happened.

We are currently feeling very unwell because we hear no official announcements.

[Hectorplains]

I have read the accusations, and these accusation are very vague:
http://securities.stanford.edu/filin...html?id=105933

Agria is currently very quit. They are discussing several scenarios. A worse case would be if they go dark, but this is not very likely.
They are the controlling shareholder of PGW.

Go back to the website quoted. Go to the bottom of the page, in a box called "Document Title" click on "Complaint for Violation of the Federal Securities Laws 11/09/2016." That will bring up a 20 page PDF file that details the allegations.

They chose not to fight the delisting... yes, that will have been done without prejudice to the judicial charges but....

You're not likely to hear much from the company at this point as matters are subjudice.

[BlackPeter]

Go back to the website quoted. Go to the bottom of the page, in a box called "Document Title" click on "Complaint for Violation of the Federal Securities Laws 11/09/2016." That will bring up a 20 page PDF file that details the allegations.

They chose not to fight the delisting... yes, that will have been done without prejudice to the judicial charges but....

You're not likely to hear much from the company at this point as matters are subjudice.

cheers, interesting document. Does not look uplifting for Agria shareholders.

More interesting for the audience on this thread is however - what does this all mean for PGW shareholders? So lets assume for arguments sake that Agria might lose the battle (which obviously might take years, unless they concede) - what impact would it have on PGW?

It might mean that Agria has to pay a huge compensation to (Agria) investors ... which obviously would only be material for them if any US court verdict can be enforced against a company incorporated in the Cayman's islands. I do have my doubts, but I am no specialist on these things.

However - if they lose it probably will mean (no matter whether they pay up or not) that the defendants have after the verdict a somewhat limited travel freedom - going to the US (and probably as well to NZ) might be after a conviction a no-no for them unless they want to be incarcerated until they pay up ... Could have some impact on PGW's board composition - I guess you couldn't excuse these guys forever ...

It might mean as well that Agria would need to have a fire sale for their PGW shares (btw bankrupting Agria, given that it is unlikely they could sell at or above their average purchase price) ... could be a good opportunity to pick up some PGW shares at a nice discount.

Do we see any other potential impact on PGW? Agria is not really material to their supply and / or sales chain - are they?

Discl: holding currently just a wee (not really material) parcel - leftover from a sale; however always happy to consider buying some more at an substantial discount to todays price;

[kiwico]

Given it's only an ADR that is being delisted, not the company's shares, would there be much effect on PGW? The delisting removes easy access to Agria shares via the NYSE but they should still be available in whichever market Agria's primary listing resides.

But where is Agria Corp's primary listing? Their website at a light glance appears to refer to only the ADRs on the NYSE. Most companies refer to their primary listing along with a reference to an ADR. What market is the listing in that the ADRs refer to?

[BlackPeter]

Given it's only an ADR that is being delisted, not the company's shares, would there be much effect on PGW? The delisting removes easy access to Agria shares via the NYSE but they should still be available in whichever market Agria's primary listing resides.

But where is Agria Corp's primary listing? Their website at a light glance appears to refer to only the ADRs on the NYSE. Most companies refer to their primary listing along with a reference to an ADR. What market is the listing in that the ADRs refer to?

The impact for PGW would not be in the Agria de-listing, but in the court case against Agria and its executives for manipulating the Agria share price (obviously depending on the outcome of the court case).

Main listing for Agria? Well, this was the NYSE. This means they would be now de facto unlisted - I don't think they are currently listed anywhere else (but they might look for a new listing place).

[Snoopy]

cheers, interesting document. Does not look uplifting for Agria shareholders.

I am not so sure. The way I read it, isn't the court acting for Agria shareholders who bought their shares on the market? But as you rightly note later, whether the court has any jurisdiction over a Cayman Island's commpany is another matter. So maybe the real effect of this court case is only to save potential future shareholders from investing?

More interesting for the audience on this thread is however - what does this all mean for PGW shareholders? So lets assume for arguments sake that Agria might lose the battle (which obviously might take years, unless they concede) - what impact would it have on PGW?

<snip>

It might mean as well that Agria would need to have a fire sale for their PGW shares (btw bankrupting Agria, given that it is unlikely they could sell at or above their average purchase price) ... could be a good opportunity to pick up some PGW shares at a nice discount.

Or it might mean a bid for the whole of PGW if the Agria stake is placed in the hands of a single buyer?

SNOOPY

[Agrarinvestor]

I don't see any negative impact for PGW if Agria has to sell shares for whatever reason. The impact should be positive. Because it is possible for another company to take over PGW.
My hope is that it is possible to seek a listing in New Zealand. This would boost the share price.

@Hector,
>>Go back to the website quoted. Go to the bottom of the page, in a box called "Document Title" click on "Complaint for Violation of the Federal Securities Laws 11/09/2016." That will bring up a 20 page PDF file that details the allegations. <<

I have read through the filing and i only see a lot of unspecific accusation. The Question in the moment is will they "Go Privat" or will they seek a new listing.
For a new listing, that is what i prefer, it is important to find a settlement in the class action. If Agria is coming out with a plan for a new listing in New Zealand, i would withdrew from the class.
TPG one of the largest hedge fons has a stake in Agria. This could be important for Agria and PGW shareholders.
In the meantime I'm happy with the development of PGW's shareprice.

[Hectorplains]

I don't see any negative impact for PGW if Agria has to sell shares for whatever reason. The impact should be positive. Because it is possible for another company to take over PGW.
My hope is that it is possible to seek a listing in New Zealand. This would boost the share price.

@Hector,
>>Go back to the website quoted. Go to the bottom of the page, in a box called "Document Title" click on "Complaint for Violation of the Federal Securities Laws 11/09/2016." That will bring up a 20 page PDF file that details the allegations. <<

I have read through the filing and i only see a lot of unspecific accusation. The Question in the moment is will they "Go Privat" or will they seek a new listing.
For a new listing, that is what i prefer, it is important to find a settlement in the class action. If Agria is coming out with a plan for a new listing in New Zealand, i would withdrew from the class.
TPG one of the largest hedge fons has a stake in Agria. This could be important for Agria and PGW shareholders.
In the meantime I'm happy with the development of PGW's shareprice.

Why do you see TPG's stakeholding in Agria as important for PGW?

[Agrarinvestor]

Why do you see TPG's stakeholding in Agria as important for PGW?

TPG is an American investment company, it is one of the largest private equity investment firms in the world, focused on leveraged buyouts, growth capital and leveraged recapitalization investments in distressed companies and turnaround situations.
With TPG involved i hope for fairness. They have to loose a reputation. It would be much better if AGRIA has a new Listing in New Zealand.
They should close their China based business. Perhaps we see a complete takeover of PGW.
https://en.wikipedia.org/wiki/TPG_Capital

[winner69]

PGW at 55 cents

Truly amazing - staggering stuff - astounding

Has the world gone mad or something?

Hasn't been 55 cents since Jan 2011 or six years ago