PGG Wrightson (PGW) today spelled out the process for a partial takeover offer signalled by Chinese agricultural company Agria Corp.
Agria owns 19.01 percent of PGW and wants to move to 50.1 percent. It has a pre-bid agreement with Pyne Gould Corp relating to its 18.3 percent stake.
PGW said today that the offer is likely to be sent on January 21. The offer will be to all shareholders on the register on January 17.
PGW's board has formed a response committee comprising independent directors Sir John Anderson, Keith Smith and Bill Thomas. The committee will oversee the preparation of the target company statement, which is likely to be published and mailed in early February.
The target company statement will contain a recommendation from the directors.
Agria became a cornerstone shareholder in PGW after New Zealand businessman Craig Norgate retreated from bold plans, including a merger with Silver Ferns Farms, when the global financial crisis hit.
The notice of takeover last year was for a partial bid by Agria (Singapore) Pte, which will be jointly owned by Agria and New Hope Group, one of China's largest food companies.
The offer price is 60c a share. PGW has previously told shareholders not to sell their shares. PGW shares traded at 54c today.
"Any takeover situation is dynamic, and this means that circumstances relating to the offer could change materially between the time the offer is made and the nominated closing date which could be extended in certain circumstances," PGW said.