Unlisted private investment company Zuellig Group has set its sights on a cornerstone stake in PGG Wrightson because it says it has common ground with the rural services group.
Peter Williams, a senior group executive at Zuellig, told the Herald yesterday that Zuellig was also considering teaming up with NewZealand parties with a view to taking a majority stake in PGG Wrightson.
They will have to be quick. Singapore's Agria has a takeover offer in place. This offer, pitched at 60 cents a share, closes on April 15. At last count, Agria had amassed almost 40 per cent of PGG Wrightson's stock.
Zuellig has 40 per cent of the New Zealand tractor distribution market, through CB Norwood.
Further afield, it has extensive interests in the animal health industry throughout Asia. The company, which is ultimately owned by Zuellig family of Switzerland, is no stranger to the New Zealand investment scene.
It has a small stake in medical services group Ebos, a minority stake in PharmacyBrands, and full ownership of CB Norwood, which has 15 branches throughout New Zealand.
While Zuellig is keen to take a position in PGG Wrightson, the target company has been left in the dark. "PGG Wrightson has not received notification of an intention by Zuellig to lodge a formal takeover offer," the company said in a statement to the NZX.
Zuellig looked at PGG Wrightson at the end of 2009 when the company was involved in a large equity raising exercise after the failed merger between itself and Silver Fern Farms. "Whilst we liked the company at that stage, there were some issues around governance and the then shareholders, so at that time we declined to proceed," Williams said. PGG Wrightson shares closed yesterday at 51c.
