PGW - PGG Wrightson

[Balance]

NZ agribusiness continues to attract investment interest - in this case, the Canadians. The Canadians are of course the second biggest player in the rural servicing industry in Australia.

Meanwhile, the tug of war of PGW's sp at $2.70 continues - notice how buyer(s) are paying up at $2.70 while seller(s) are attempting to keep it at $2.70?

Smells to me like Agria keeping the sp at $2.70+ while BAIC wants to keep it below as they negotiate an acceptable takeover price oil the background?

https://www.nzherald.co.nz/business/...ectid=12344393

"A Canadian pension fund has bought a major stake in New Zealand's biggest corporate dairy farmer, Dairy Holdings. Sooke Investments, a subsidiary of giant Quebec public service pension fund manager PSP Investments, has bought 24.9 per cent of South Island-based Dairy Holdings. PSP has also been increasing its investments across the Tasman. In October last year, through Sooke and another subsidiary, BidCo, it bought listed Australian agribusiness Webster for $854 million."

[arekaywhy]

I've noticed this sort of thing before, where there is MASSIVE bid or ask. Is there a name for that sort of behavior?

I find it quite frustrating sometimes, so would like to work out when to stay away from it.

[sb9]

NZ agribusiness continues to attract investment interest - in this case, the Canadians. The Canadians are of course the second biggest player in the rural servicing industry in Australia.

Meanwhile, the tug of war of PGW's sp at $2.70 continues - notice how buyer(s) are paying up at $2.70 while seller(s) are attempting to keep it at $2.70?

Smells to me like Agria keeping the sp at $2.70+ while BAIC wants to keep it below as they negotiate an acceptable takeover price oil the background?

https://www.nzherald.co.nz/business/...ectid=12344393

"A Canadian pension fund has bought a major stake in New Zealand's biggest corporate dairy farmer, Dairy Holdings. Sooke Investments, a subsidiary of giant Quebec public service pension fund manager PSP Investments, has bought 24.9 per cent of South Island-based Dairy Holdings. PSP has also been increasing its investments across the Tasman. In October last year, through Sooke and another subsidiary, BidCo, it bought listed Australian agribusiness Webster for $854 million."

Agree totally, someone is keeping temporary cap around that $2.70 mark, once that resistance is gone, we should see it inch close to $3 mark as reporting time is nearby.

[mfd]

Well, they're still buying on market.

Beijing Holdings BAIC Ltd. now up to 11.105% vs 10.019% in April. On market, average price about $2.68.

https://www.nzx.com/announcements/355622

[Balance]

Well, they're still buying on market.

Beijing Holdings BAIC Ltd. now up to 11.105% vs 10.019% in April. On market, average price about $2.68.

https://www.nzx.com/announcements/355622

Interesting - guess they are happy to pick up as many under $2.75 at this stage as they can.

[Snow Leopard]

Probably worth keeping them in the portfolio for a while longer then

[iceman]

Probably worth keeping them in the portfolio for a while longer then

Most definitely and continue collecting the juicy dividend while watching how this plays out. I do hope PGW stays on the NZX and does not get taken over. We need more agribusinesses and primary industry operators to invest in, not less.

[percy]

Most definitely and continue collecting the juicy dividend while watching how this plays out. I do hope PGW stays on the NZX and does not get taken over. We need more agribusinesses and primary industry operators to invest in, not less.

I too would like to see them stay listed on NZX.
As for the divies.I love them.
Primary sector is what I think NZ does well,so is a good sector to invest in.

[sb9]

Well, they're still buying on market.

Beijing Holdings BAIC Ltd. now up to 11.105% vs 10.019% in April. On market, average price about $2.68.

https://www.nzx.com/announcements/355622

Now that BAIC have shown their hand again, it'll be interesting to see how the sellers react now, keeping offloading at current levels or dry up volume to move price higher.

[Snoopy]

Now that BAIC have shown their hand again, it'll be interesting to see how the sellers react now, keeping offloading at current levels or dry up volume to move price higher.

BAIC have no particular reason for the latest increase in their holding, as they had a blocking stake already. Unless that is they just saw it as a good investment, or they really are planning to launch a takeover bid. I am not expecting a good result from PGW for the year because of the effects of drought and the shut down of the live livestock auctions through Covid. Maybe a poor result will be weakness that BAIC is looking for before pouncing? What I did find interesting was that the latest 1% block of shares acquired looks like it has not come from Agria (unless Agria make a counter declaration in the next few days I suppose). I worked out my own holding price for PGW shares is now $1.70. That is mainly through owning the shares for a long time rather than any clever Covid scare buying. I reckon $2.70 is near fair value for an average year of trading. So I won't be accepting a takeover offer at $2.70, despite the potential gains I would crystallise by doing so. Like others have commented, I prefer to see PGW remain listed on the NZX. BAIC could make a 'lowball' offer to take out the Agria stake that would be rejected as inadequate by an independent valuation report. That would in turn mean that minority shareholders would be foolish not to continue holding their shares at today's prices. This would be my preferred outcome.

SNOOPY