9 Sep 2008

Silver Ferns stake to be part funded by share offer

10:24 pm on 9 September 2008

PGG Wrightson intends to raise $100 million to help fund a half-stake in Silver Ferm Farms.

Silver Fern Farms' shareholders on Monday agreed to sell 50% of the meat company to PGG Wrightson for $220 million.

The rural services company says it plans to raise almost half that amount in a share offer that will be put to its investors once the terms are set.

Chairman Craig Norgate says the proceeds will be used to buy shares in Silver Fern Farms.

Under the deal, PGG will become the stock procurement arm of Silver Fern Farms, formerly known as PPCS.