12 May 2010

Rural Portfolio receivers sell PGG Wrightson stake

7:45 am on 12 May 2010

The receivers of Rural Portfolio Investments, the company founded by Craig Norgate and Baird McConnon, have sold its entire stake in rural services company PGG Wrightson in order to repay creditors.

The sale of 46 million shares netted the receiver just over $24 million, falling short of the $60 million owed to the 8000 bond holders in Rural Portfolio.

The shares were snapped up by Craigs Investment Partners on behalf of clients.

The receiver, McGrathNicol, says it did consider distributing the shares to creditors on a pro-rata basis, but for a "number of reasons" it decided not to pursue this.

The receivers are now deciding whether it will also sell RPI's 10 million shares in NZ Farming Systems Uruguay. At current prices, they would be worth about $4 million.

Shares in PGG Wrightson closed up 2 cents to 55 cents on Tuesday.