Speculation on a takeover of rural sector company PGG-Wrightson (PGW) has receded after its chairman withdrew a takeover offer for New York-listed Agria Corporation, which has a 50.22% stake in PGW.
On February 9, Agria Corp notified the New York Stock Exchange of a non-binding takeover proposal received from its biggest shareholder, Guanglin ‘‘Alan'' Lai, who is also PGW's chairman.
Agria Corp indirectly holds 50.22% of PGW through Agria (Singapore) Pte Ltd.
At the time PGW's independent directors Bruce Irvine, John Nichol and Ronald Seah formed a committee to assess the implications, if any, for PGW.
Yesterday, Mr Irvine said PGW had been informed Agria Corp had received notice that the non-binding takeover offer by Mr Lai had been withdrawn.
Craigs Investment Partners broker Peter McIntyre said Mr Lai's withdrawal removed ‘‘one element'', of any potential PGW takeover.
He said had Mr Lai gone through with the Agria takeover, that would have cost him about $80million, but he would have gained a 50%, or $150million controlling stake in PGW, which had a market capitalisation of about $300million.
