Ngai Tahu Holdings plans to take a $15 million cornerstone shareholding in PGG Wrightson through its involvement in a joint venture with major Chinese agriculture companies.
The surprise announcement came late yesterday afternoon, when Ngai Tahu Holdings confirmed it had finalised negotiations with Agria Singapore and Chinese multibillion-dollar company New Hope Group, to take an equity stake in Agria's holding company.
Ngai Tahu's $15 million shareholding would be in the joint venture vehicle between the Agria group and New Hope (which owns the Agria vehicle which made the partial takeover offer for PGGW).
Agria was a 19.01% shareholder in PGGW and announced last December it would make a partial takeover offer for an extra 38.3% of the shares not already held by Agria for 60c a share.
Ngai Tahu Holdings Group said Agria had now received conditional acceptances so that when the takeover offer was complete it would hold 50.01% of PGGW, New Zealand's largest rural services company.
Ngai Tahu Holdings' involvement will be subject to approval by PGGW shareholders which would be sought in the next six to eight weeks.
Ngai Tahu Holdings chief executive Greg Campbell said the stake was less than 2% of the company's portfolio and created a number of significant long-term opportunities and relationships, particularly in the Chinese market.
Ngai Tahu already had a strong presence in China through tourism and seafood businesses and the investment would enhance that.
