PGG Wrightson considering $100 million share offer

Rural services company PGG Wrightson said today it is considering a share offer of at least $100 million to fund a new company in Uruguay.

PGG Wrightson said the net proceeds of the offer would be used to buy and develop farms in Uruguay using intensive pasture-based farm management developed in New Zealand.

The new company would be called NZ Farming Systems Uruguay Ltd.

"The proposal is subject to final due diligence, which is likely to take several weeks," the company said.

If approved, the offer would open on November 6.

About 7 per cent of net profit last year came from PGG Wrightson's existing business in Uruguay.

- NZPA