PGG Wrightson may have surprised the market with a better result than expected, but questions still remain about the potential liability of its dispute with meat company Silver Fern Farms (SFF).
Neither chief executive Tim Miles nor chairman Craig Norgate would discuss in detail the public disagreement with SFF, other than to say the relationship was better than portrayed in the media and that discussions should be kept behind closed doors.
"We have taken a principled position on this and the amount provided was based on advice," Mr Miles said of the $10 million offer of compensation and an ex gratia payment.
The offer also included a proposal for PGGW to provide a supply chain and procurement system, an offer Mr Miles said would create "substantial potential value for SFF".
"In our view what we are putting forward is something much more than the $10 million."
The failed transaction cost PGGW $17 million, of which $10 million was set aside as compensation.
ABN Amro Craigs investment adviser Peter McIntyre said the potential liability associated with the dispute remained a risk.
