Buyback Conference for PGG Wrightson

PGG Wrightson says he has no comment on Australian media reports that the agri-food company listed on ASX, Elders, is looking to buy it for $ 600 million.

A chronicle of The Australian indicates that seniors might seek to raise $ 300 million through a rights issue to help finance the purchase, the rest being debt financed. PGG Wrightson's board of directors "met Friday to discuss the sale of the company and speculation establishes that the former have already been told that he is the preferred bidder" , The Australian reported.

"has no comment on this speculation", while Elders has issued a statement to the ASX, stating that he has "made no definitive proposal" to acquire Wrightson and that it "evaluates all possible possibilities against a range of factors and will only pursue acquisitions that have a compelling strategic and financial sense for our shareholders."

The rural services company is indirectly controlled by the Chinese company Agria Corp, which holds a 50.2% stake through Agria (Singapore), but this stake has been reviewed by the Overseas Investment Office as to whether it still meets the test of 'good morals' Regulatory body after being delisted from the New York Stock Exchange last year.

Agria wants to sell its stake in Wrightson, and Credit Suisse (Australia) and First NZ Capital execute the proc sales, having already been hired to run a strategic review of the company.

Wrightson shares recently traded at 65 cents and rose 5 per cent this year.