Australian agri-services firm Elders has jumped back into the New Zealand market, taking an 11% stake in NZX-listed PGG Wrightson for just over $37 million.
Elders bought the stake from BCA New Continent Agri Hldg in an off-market trade for $4.35 a share, 15 cents higher than PGG Wrightson’s closing price on Wednesday.
It told the ASX on Wednesday the transaction was in line with its geographic diversification strategy and would be funded through debt facilities.
Elders did not “currently” intend to initiate a proposal to acquire control of the company.
It previously operated in NZ but sold its operation to Ashburton-based Carr Group in 2014.
That business, which now operates under the Carrfields brand, included wool, livestock, seed and insurance brokering.
BCA bought into PGG Wrightson in September 2020, buying nearly 9 million shares off Beijing Holding BAIC in an off-market trade for about $24.3m.
In October 2020, it then bought another 760,000 shares in Wrightson for about $2m through a number of on-market transactions.
Singaporean company Agria (Singapore) PTE has a 38% stake in Wrightson.
In the 12 months to June this year, PGG Wrightson posted a net profit of $24.3m and revenue of $952.7m.
The company’s shares closed at $4.20 yesterday.
