BEIJING, Aug 31, 2011 (MARKETWIRE via COMTEX) —
Agria Corporation
/quotes/zigman/487479/quotes/nls/gro GRO
+7.76%
(the “Company” or “Agria”), a
China-based company with investments in the agriculture sector, today
announced that all conditions required for the sale of PGG Wrightson
Finance (“PWF”) by Agria’s New Zealand listed subsidiary, PGG
Wrightson (nzx:PGW) (“PGW”) have been confirmed and settlement of
the sale to Heartland New Zealand (“Heartland”) has been completed.
The purchase price paid to PGG Wrightson for the shares in PWF was
approximately NZ$99.5 million (approximately US$84.7 million) being
an amount equal to the adjusted net tangible assets of PWF. PGG
Wrightson has entered into a distribution agreement whereby Heartland
will offer financial products and services to PGG Wrightson’s
agri-clients. PGG Wrightson will in turn make referrals to Heartland
from its network of farmer clients.
George Gould, Managing Director of PGG Wrightson, said the completion
of the deal was an important milestone and marks the start of a
significant new business relationship between PGG Wrightson and
Heartland. “Both companies are passionate supporters of the
agriculture sector, and together we represent a compelling client
service proposition.”
Xie Tao, Agria’s Chief Executive Officer, said, “Coming just four
months after Agria increased its shareholding in PGW to 50.01%, the
completion of this transaction is an important strategic step for PGW
accomplishing two key goals. It allows PGW management to focus on
growing and enhancing value in its two core divisions of Agriservices
and Agritech while also substantially reducing the level of debt on
PGW’s balance sheet both from the debt in PWF being passed to
Heartland and from the consideration received by PGW.”
About Agria Corporation
Agria Corporation
/quotes/zigman/487479/quotes/nls/gro GRO
+7.76%
is a China-based agriculture company
with operations in China and internationally. In China, we engage in
research and development, production and sale of seed products,
including field corn seeds, edible corn seeds and vegetable seeds. We
own through Agria Asia a 50.01% equity interest in PGW, New Zealand’s
largest agricultural services company. PGG Wrightson reported
turnover of NZ$1.2 billion (US$1.0 billion) for the twelve months
ended June 30, 2011. For more information about PGW, please visit
www.pggwrightson.co.nz . For more information about Agria Corporation,
please visit
www.agriacorp.com .
Safe Harbor Statement:
This announcement contains forward-looking
statements. These statements are made under the “safe harbor”
provisions of the U.S. Private Securities Litigation Reform Act of
1995. These forward-looking statements can be identified by
terminology such as “will,” “expects,” “anticipates,” “future,”
“intends,” “plans,” “believes,” “estimates,” “confident” and similar
statements. Agria may also make written or oral forward-looking
statements in its periodic reports to the U.S. Securities and
Exchange Commission on Forms 20-F and 6-K, etc., in its annual report
to shareholders, in press releases and other written materials and in
oral statements made by its officers, directors or employees to third
parties. Statements that are not historical facts, including
statements about beliefs and expectations of Agria or PGW, are
forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of important factors could
cause actual results to differ materially from those contained in any
forward-looking statement. Potential risks and uncertainties include,
but are not limited to, those risks outlined in Agria’s filings with
the U.S. Securities and Exchange Commission and those risks outlined
in PGW’s filing with the New Zealand Stock Exchange. All information
provided in this press release is as of the date of this announcement
unless otherwise stated, and Agria does not undertake any obligation
to update any forward-looking statement, except as required under
applicable law.
Contacts:
In China:
John Layburn
Acting CFO; Chief Strategy and Compliance Officer
China Tel: 86-10-8438 1031
john.layburn@agriacorp.com
In the U.S.:
David Pasquale
Senior Vice President
U.S. Tel: +914-337-1117
david.pasquale@agriacorp.com
SOURCE: Agria Corporation
mailto:john.layburn@agriacorp.com
mailto:david.pasquale@agriacorp.com
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