25 Apr 2009

PGG Wrightson, Silver Fern agree compensation

11:54 am on 25 April 2009

Rural service company, PGG Wrightson, is to pay $30 million in compensation to meat company Silver Fern Farms over a failed business deal.

PGG Wrightson failed to complete a deal in which it was to pay $220 million for a half stake in the meat company last year.

The compensation is made up of $25 million to be paid now, $5 million already paid, and 10 million ordinary shares in PGW.

Silver Fern Farms Chief Executive Keith Cooper said settlement represents a pragmatic solution.

"It's best to move on, focus on our independent businesses and ensure that we are doing the right thing for our constituents," he said.

Separately, Silver Fern Farms has reported a net loss of $5.9 million for the six months to March.