22 Apr 2010

PGG Wrightson stake lowered by RPI

6:55 am on 22 April 2010

An investment company owned by Craig Norgate and Baird McConnon, Rural Portfolio Investments, has sold half its stake inPGG Wrightson for $27 million.

Rural Portfolio Investments sold 48 million shares in the rural services company at 56 cents to unnamed buyers to repay debt. Its stake is now 6%.

It previously owned 27% of PGG Wrightson before the company raised money to repay part of its debt mountain.

Rural Portfolio Investments says the surplus cash from the sale will be held in its escrow account.

Earlier this week, RPI breached the terms of its security trust deed after making a dividend payment, because it did not leave enough money in the escrow account, which is required to hold enough cash to meet the next payment.