Decision Summary - Agria Corporation

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Decision Consent granted
Section 12(b)(iii) Overseas Investment Act 2005
Decision date 16 November 2009
Investment An overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in up to 19.99% of the ordinary shares of PGG Wrightson Limited which owns or controls:
  • a leasehold interest in 8.6163 hectares of land at Wackrow Street, Taumaranui; and
  • a leasehold interest in 7.0733 hectares of land at Temuka Road, Temuka; and
  • a freehold interest in 18.5928 hectares of land at Owaka Hwy (Finnegand); and
  • a freehold interest in 18.8148 hectares of land at Tinwald, Ashburton; and
  • a leasehold interest in 18.0742 hectares of land at Saleyard Rd, Bell Rd and Church Rd, Matawhero, Gisborne; and
  • a freehold interest in 23.6166 hectares of land at 41-77 Centennial Park Rd, Wellsford; and
  • a freehold interest in 4.5004 hectares of land at Cotter Street, Te Kuiti; and
  • a freehold interest in 19.0500 hectares of land at 57 George Street, Tuakau; and
  • a freehold interest in 15.5498 hectares of land at Norfolk Rd, Masterton; and
  • a freehold interest in 6.9887 hectares of land at 16 Takapau Road, Waipukurau; and
  • a freehold interest in 1.3885 hectares of land at Briscoe Street, Awakino; and
  • a leasehold interest in 7.6407 hectares of land at Lee Road, Hamilton; and
  • a leasehold interest in 0.5208 hectares of land at Gladstone Road, Richmond; and
  • a freehold interest in 0.9703 hectares of land at 292 Mersey Street, Invercargill; and
  • a freehold interest in 10.0112 hectares of land at 784 North Road, Lorneville, Invercargill; and
  • a freehold interest in 2.8882 hectares of land at State Highway 25, Coroglen; and
  • a freehold interest in 1.3952 hectares of land at 22 Dobson Street, Ashburton; and
  • a freehold interest in 7.4954 hectares of land at Esk Road, Stratford; and
  • a freehold interest in 4.2871 hectares of land at 500 Maraekakano/Southhampton Street, Hastings; and
  • a freehold interest in 20.5036 hectares of land at Cnr Shands Rd & Marshs Rd, Prebbleton; and
  • a freehold interest in 24.6099 hectares of land at Kiwi Road, Wairoa; and
  • a freehold interest in 23.1054 hectares of land at Young Road, Rangiuru; and
  • a freehold interest in 7.3172 hectares of land at Mangakakahia Road, Kaikohe;
  • a freehold interest in 96.1859 hectares of land at Tancreds Road, Lincoln; and
  • a leasehold interest in 4.2081 hectares of land at Tancreds Road, Lincoln; and
  • a leasehold interest in 0.6062 hectares of land at Evans Street, Timaru; and
  • a leasehold interest in 5.2748 hectares of land at 32 Pandora Road, Napier; and
  • a freehold interest in 0.9156 hectares of land at Tuhua Road, Ongarue; and
  • a freehold interest in 2.0323 hectares of land at Curletts and Wigram Roads, Christchurch.
Consideration $1,544,146,000
Applicant Agria Corporation
Virgin Islands, British (38.74%), United States of America (32.1%), China, People's Republic of (22.21%), Cayman Islands (6.95%)
Vendor Existing Shareholders of PGG Wrightson Limited
New Zealand (87.0%), Various (13.0%)
Background PGG Wrightson Limited (PGW), a company listed on the NZSX, is New Zealand’s largest agricultural services company. PGW is undertaking a capital raising, in which Agria proposes to participate. Upon completion of the capital raising process it is likely that the Applicant will have acquired up to 19.99% of the ordinary shares of PGW. This will result in PGW becoming an overseas person.

The proposed investment by the Applicant will enable PGW to use the proceeds of the proposed investment to repay debt and to continue its business operations with less financial pressure. This is likely to provide further operational certainty to PGW.

The Applicant and PGW will enter into a Co-operation Agreement under which they will agree to take certain steps in relation to agricultural research and development, investment and establishment of various joint-ventures internationally.

The overseas investment transaction has satisfied the criteria in section 16 of the Overseas Investment Act 2005. The 'substantial and identifiable benefit to New Zealand' criteria were satisfied by particular reference to the following factors:
  • Overseas Investment Act 2005
    • 17(2)(a)(i) – Creation/Retention of jobs
    • 17(2)(a)(iii) – Increased export receipts
    • 17(2)(f) – Offer to sell riverbed and foreshore to the Crown
More information Michael Pollard
Simpson Grierson (Auckland)
Private Bag 92518
Wellesley Street
AUCKLAND

Andrew Matthews
Simpson Grierson (Auckland)
Private Bag 92518
Wellesley Street
AUCKLAND

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