Doubt it. The chance to buy more PGW at a discount may be too hard to resist. It will be interesting to see the Board/corporate shake up at PGC post the capital raising.
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Doubt shakes the weaker holders. Then there can be an encore of PGC. maybe?
But also that fools rush in where angels fear to tread... maybe?
In the interim, the following are noteworthy :
- small volumes for today's negative price action,
- PGW remains the biggest farm services and supply company in NZ,
- agriculture will make a comeback ... with a vengeance,
- NZ remains primarily an agrarian economy.
PGC has capital now to play with. It can choose to invest in PGW or it can choose to sell - maybe to Agria.
Perfectly reasonable stance for the PGC board to make.
Also, forget about the existing boards - it will be very surprising if there's no big changes made at both PGW and PGC.
A new broom sweeps clean.
Gaynor not very happy with Agria .... and he's a shareholder
http://www.nzherald.co.nz/business/n...0605033&pnum=0
Obviously doen't think too much for Chairman Smith - Smith seems a rather unlucky fella
These concerns gathered momentum because PGG Wrightson, and its related party companies, have made a huge number of blunders in recent years and board governance has been particularly weak.
In addition Keith Smith, PGG Wrightson's chairman, has been involved in a large number of disastrous overseas transactions.
He was chairman of The Warehouse and Tourism Holdings when they went into Australia and is chairman of the poorly performing NZ Farming Systems Uruguay.
Brian Gaynor would be one of the very few whose opinion I trust out there in money land.
Totally like that guy.
I think directors should have to qualify to be on boards by going to some form of directors school,where they are taught proper etiquette in dealing with company business and their shareholders,some of the goons out there i.e feltex,can have their disasters lose everybodies money and still be directors. Money land needs a stronger hand than Mark Weldon.
Even Rod Oram is worried about this Agria deal ... and the inconsistency in what Chairman Smith and what CEO are saying what the deal isall about must be a worry
http://www.stuff.co.nz/business/2997...ght-with-peril
PGW sp down 7.5% today.
Is the market telling us something we dont know?
Its taken a battering since last week and I'd love to know why. Seems like everyone is suddenly unhappy with having agria in the mix. While agria does seem somewhat questionable, the fact some is paying 88cents for the shares has to be a good thing. Yet the shares are now trading at the same level they were before the announcement. In fact the day before the announcement they were 65 cents after some somewhat dubious(possibly insider) trading. So in short maybe the market is telling us something we don't know I can't think of another plausible reason.