Zuellig emerges as potential new bidder for PGG Wrightson

Zuellig emerges as potential new bidder for PGG Wrightson

By Paul McBeth

Feb. 25 (BusinessDesk) – Zuellig Group, the owner of local tractor distributor CB Norton Distributers Ltd., has emerged as a potential new bidder for a stake in rural services company PGG Wrightson Ltd.

The Hong Kong-based investment company, which also owns shares in Pharmacybrands Ltd., is keen on boosting its agricultural interests in New Zealand and sees Wrightson as having “strong opportunities to add value,” according to senior group executive Peter Williams.

“Given the extent of our agricultural investment here, one company we are currently considering is PGG Wrightson,” Williams said in a statement. “We are looking at a number of options for investment in PGG Wrightson, including potentially a strong cornerstone shareholding position.”

The bid would be the third public expression of interest, after Chinese seed and agricultural research firm Agria Corp.’s $141 million bid to take a majority stake with backing from China’s New Hope Group. An unnamed bidder, thought to be Canada’s Agrium Inc., dropped out of the running this week.

Williams said Agria’s bid came from a “Chinese-based company with little experience in New Zealand.”

He will return to New Zealand next week, when he will give more details about a potential bid. Zuellig is also looking at other opportunities in New Zealand, though it wouldn’t go into further detail.

Wrightson’s shares were unchanged at 51 cents in trading, 9 cents below the 60 cents a share offer from the Chinese consortium.

Zuellig’s local holding company, Wahn Investments Ltd., reported a loss of $1.6 million in the year ended Dec. 31 2009, the last time it lodged financial statements with the Companies Office, compared to a profit of $12.3 million a year earlier.

The company’s net assets were $80.1 million at the end of the 2009 financial year, down from $82.2 million a year earlier.

(BusinessDesk)

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