[ad_1]
Elders, a group of rural services, rejected reports that it has made an offer for New Zealand's rival PGG Wrightson.
Elders directs the company, which is studying a put option to facilitate the exit of its larger company. shareholder, the Chinese company Agria.
The Street Talk column of the Australian Financial Review reported last month that doubts about an agreement had appeared after a rally in the shares of PGG Wrightson had shaken potential bidders
. On Tuesday, Elders said it has made no definitive proposal to acquire PGG Wrightson
"Elders assesses every possible opportunity against a series of factors and will only seek strategic acquisitions for our shareholders" said the company. .
Advertisement
The purchase of PGG Wrightson will mark the largest acquisition for seniors in more than a decade
. This would require a capital increase of up to $ 450 million. After a stellar race, Elders shares collapsed 16 percent last week. On Friday, seniors revealed stable earnings prospects, as drought is hurting their retail operations, while easing livestock prices has impacted the agency's division.
Alumni CEO Mark Allison said in May that while Elders was closely reviewing PGG Wrightson, several others were under investigation and would not proceed with any transaction if earnings per share were accretive.
Rival Ruralco is interested in PGG Wrightson, but does not have the firepower of balance sheet for a takeover and instead would like to pick up the rural services operations of the New Zealand group while leaving the division of seed to another player.
[ad_2]
Source link
