22 Oct 2009

Reassurance given by PGG Wrightson over Agria

9:32 pm on 22 October 2009

PGG Wrightson has sought to reassure shareholders that there are no potential problems with the company's new cornerstone shareholder.

China-based Agria bought a 13% stake in PGG Wrightson last week as part of a plan by the the company to raise capital to repay investors.

Since then, it's been revealed that Agria, which is listed in New York, failed to file accounts for 2008.

In a separate issue, it is facing four class actions from groups of American investors who bought shares in an IPO in 2007, in which shares fell sharply below the offer price.

PGG chairman Kevin Smith says due diligence of Agria was undertaken, with the help of their advisers, and no issues of significant concern were found.

Mr Smith says details of a possible equity raising will be revealed in November.