2 Jun 2011

PGG to retain ties to wool growers despite sale

9:33 pm on 2 June 2011

PGG Wrightson says it still regards wool as a core business, despite selling its half stake in the New Zealand Merino Company for $76 million.

The stake has been purchased by its joint venture partner, the farmer-owned Merino Grower Investments.

PGG Wrightson managing director George Gould says the merino venture has been a profitable part of the business in the past but is no longer the company's core focus.

Mr Gould says PGG Wrightson will continue to supply wool store activities to the New Zealand Merino Company after the sale.

If approved by the merino company's shareholders, the deal will be settled at the end of the month.