Rural services company PGG Wrightson has become the latest New Zealand firm to turn to China for funding.
China-based Agria Corporation will pay $36 million to take a 13% in the company, with a view to increasing that in the future.
The deal will give Agria at least two seats on the board, however Agria chief executive Xie Tao says he does not want a controlling stake.
PGG Wrightson will use the money to pay some of the $200 million owed to its banks by the end of March next year.
The company is also considering raising money through a rights issue and by selling non-core assets. Details will be announced in November.
PGG Wrightson chief executive Tim Miles says Agria is interested in setting up a livestock trading system and a rural services business in China. The companies will also cooperate on seed cultivars, he says.
Chinese electronic and appliance maker Haier took a 20% stake in Fisher & Paykel Appliances earlier this year as the company raised more than $200 million from investors to reduce debt.
Shares PGG Wrightson jumped by 20% after the announcement, closing up 13 cents to 78c on Friday.
