Agria Corp. (GRO) announced that it has entered into an agreement with PGG Wrightson that provides for Agria to make an investment in PGG Wrightson and for the formation of a strategic partnership between PGG Wrightson and Agria.
Under the agreement, PGG Wrightson and Agria have formed a strategic partnership and have jointly undertaken to work to create value for both companies through the advancement of agricultural technology and the development of new markets.
Further, Agria would invest in PGG Wrightson through the placement of new equity representing 13% of PGG Wrightson's share capital, at $0.88 per share, at a value of NZ$36 million. Both parties' aspiration is to become a significant shareholder in PGG Wrightson over time.
The PGG Wrightson Board is considering options for an equity raising such as a rights issue. While the timetable cannot be certain at this point, it is believed that an announcement on the terms of any equity raising could be made by early November.
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