PGW - PGG Wrightson

[Balance]

All but one seller below $3 ($2.96) has been bought out.

Looks like it is heading to $3 and higher again very soon.

Have a look at Elders on ASX - up 58% YTD as investors accumulate agriculture shares due to improving trading conditions and their defensive qualities.

In contrast, PGW is only up 24% YTD so you could very well be right that there's another 80 cents for PGW sp to go and keep pace with the steady uptrend in Elders sp.

Then, there's the takeover appeal from BAIC.

Got to say that I am very pleased to have PGW in my portfolio and it is better that it is kept on the NZX rather than be taken over - NZ can ill afford the loss of another listed company, especially an agricultural one.

Interesting times ahead!

[sb9]

Have a look at Elders on ASX - up 58% YTD as investors accumulate agriculture shares due to improving trading conditions and their defensive qualities.

In contrast, PGW is only up 24% YTD so you could very well be right that there's another 80 cents for PGW sp to go and keep pace with the steady uptrend in Elders sp.

Then, there's the takeover appeal from BAIC.

Got to say that I am very pleased to have PGW in my portfolio and it is better that it is kept on the NZX rather than be taken over - NZ can ill afford the loss of another listed company, especially an agricultural one.

Interesting times ahead!

Couldn't agree more, either way its win win for holders

[Balance]

This appears on their substantial shareholder notices.
Additional information
Address(es) of substantial product holder(s): Rm2912 Shun Tak Centre, West Tower, 200
Connaught Road C., Hong Kong
Contact details: Tammy Mok, tammy@bidco.com.hk, +852 31018512

Bidco?

That's a dead giveaway of what they are about!

[iceman]

Bidco?

That's a dead giveaway of what they are about!

My thoughts exactly when I saw that :-)

[Snoopy]

PGW is already overseas owned between Agria & offshore institutions and BAIC.

Being overseas owned already does not preclude the NZ government checking out any new overseas owners being of good character. In fact the government will be required to check out just who is behind BAIC. If they are of better character that Agria, then a bid by BAIC at whatever price might be welcomed. But there is no guarantee that a takeover offer from BAIC would be approved. And if Alan Lai has come to some cosy arrangement with BAIC to regain control of PGW by stealth, Agria may yet be required to divest their remaining PGW shareholding to local institutions at a discount.

And you read it here - paying $3.25 to takeover PGW is hardly buying NZ assets on the cheap, which is the primary intent of the new emergency notification regime!

The problem is a bid for the company won't introduce any new capital into PGW. It just transfers ownership from one shareholder to another. In terms of PGW operations, such a deal would be of no help to PGW whatsoever. If it doesn't help out with saving the company, then there is no reason the government would look favourably on such a deal.

SNOOPY

[Snoopy]

Have a look at Elders on ASX - up 58% YTD as investors accumulate agriculture shares due to improving trading conditions and their defensive qualities.

In contrast, PGW is only up 24% YTD so you could very well be right that there's another 80 cents for PGW sp to go and keep pace with the steady uptrend in Elders sp.

What improving trading conditions?

Dairy farmers in NZ have been rescued , ostensibly anyway, from going out the back door in the last month by rising milk prices. But the season has only just started so actual milk production volumes are low. And it is far to early to know if a glut of milk from northern hemisphere producers will spoil the party. Demand for meat is good but only at the low end of the market with most high end restaurants around the world closed. Grinding up those fillet steaks to go into McDonalds burgers isn't going to make a great return for our beef farmers. Venison has crashed in price as it is also restaurant trade dependent. Forestry crashed went up and has crashed again. For PGW's livestock division, live animal auctions were cancelled during Covid-19 restrictions, and I'll bet on-line didn't make up for everything lost. PGGW real estate will be suffering (read loss making) with rural land prices are under pressure. Dairy farm sales in Canterbury for example are so low (no sales at all) that property sales statistics have become meaningless. Banks are still wanting out of rural property loans, and that puts pressure on the cashflow from farmers (less money to spend in PGGW Retail Supply stores). Oh , and before last month the North Island in particular was suffering one of the worst droughts in history. Rain has come now, but the temperatures are too low for grass to grow. And to top it all off, the NZD to USD exchange rate is climbing. Horticulture is probably the only bright spot. But when vineyard owners smile, it is usually bad for the rest of the farming sector. I think right now is the worst macro environment for farmers in NZ for at least ten years.

To top all that off there are the ongoing problems with the in house PGW superannuation scheme which, despite assurances at last years AGM, is almost guaranteed to need another bail out IMO.

Then, there's the takeover appeal from BAIC.

Got to say that I am very pleased to have PGW in my portfolio and it is better that it is kept on the NZX rather than be taken over - NZ can ill afford the loss of another listed company, especially an agricultural one.

Interesting times ahead!

So am I. But I have been accumulating PGW since the capital payout at prices far less than if I had bought those shares today, as have you Balance. But to encourage 'sucker' investors into PGW at this stage to swallow some super defensive story at a point where PGW is looking stretched by any conventional valuation metric? Then justify things by saying it will be a bargain if taken over? I couldn't think of a better financial recipe for a new investor to lose money!

SNOOPY

[sb9]

All but one seller below $3 ($2.96) has been bought out.

Looks like it is heading to $3 and higher again very soon.

Asks at $3.01 is all but gone. next stop ???

[Balance]

Being overseas owned already does not preclude the NZ government checking out any new overseas owners being of good character. In fact the government will be required to check out just who is behind BAIC. If they are of better character that Agria, then a bid by BAIC at whatever price might be welcomed. But there is no guarantee that a takeover offer from BAIC would be approved. And if Alan Lai has come to some cosy arrangement with BAIC to regain control of PGW by stealth, Agria may yet be required to divest their remaining PGW shareholding to local institutions at a discount.



The problem is a bid for the company won't introduce any new capital into PGW. It just transfers ownership from one shareholder to another. In terms of PGW operations, such a deal would be of no help to PGW whatsoever. If it doesn't help out with saving the company, then there is no reason the government would look favourably on such a deal.

SNOOPY

Everyone knows who is behind BAIC! Been fully disclosed & discussed and they have made it clear why they are interested in PGW.

https://www.nzx.com/announcements/352113

You make it sound like the government can willy nilly reject any deal just because it is an overseas buyer - it does not work like that as you should know.

It cannot as OIO decisions can be appealed as they have been in the past, and any unjustifiable rejection creates a precedent which is the last thing a government wants.

Not sure why you are attempting to make mountains out of molehills, Snoopy - as has been the case now with PGW for the last 7 months. All cool though as it has certainly helped me get more PGW shares at very very nice prices!

[Balance]

So am I. But I have been accumulating PGW since the capital payout at prices far less than if I had bought those shares today, as have you Balance. But to encourage 'sucker' investors into PGW at this stage to swallow some super defensive story at a point where PGW is looking stretched by any conventional valuation metric? Then justify things by saying it will be a bargain if taken over? I couldn't think of a better financial recipe for a new investor to lose money!

SNOOPY

Watch what you insinuate, Snoopy - it is one thing to for us holders to discuss & disagree but entirely different thing to accuse anyone of trying to encourage suckers into investing into anything.

What I can say is that some of us have been positive on PGW for a while while you have been relentlessly negative even as the sp trends higher. Should we imply that investors have lost the opportunity to invest in PGW & missed good gains because you have scared them off with your relentless negative postings? We don’t because it is understood we all write about why we feel about stocks we hold or don’t want to invest.

[tim23]

Have a look at Elders on ASX - up 58% YTD as investors accumulate agriculture shares due to improving trading conditions and their defensive qualities.

In contrast, PGW is only up 24% YTD so you could very well be right that there's another 80 cents for PGW sp to go and keep pace with the steady uptrend in Elders sp.

Then, there's the takeover appeal from BAIC.

Got to say that I am very pleased to have PGW in my portfolio and it is better that it is kept on the NZX rather than be taken over - NZ can ill afford the loss of another listed company, especially an agricultural one.

Interesting times ahead!

Its nice to agree for a change I'm a happy holder and like others topped back up with my capital return @ $2.19.