BEIJING, Aug 31, 2011 (MARKETWIRE via COMTEX) -- Agria Corporation /quotes/zigman/487479/quotes/nls/gro GRO +5.17% (the "Company" or "Agria"), a China-based company with investments in the agriculture sector, today announced that all conditions required for the sale of PGG Wrightson Finance ("PWF") by Agria's New Zealand listed subsidiary, PGG Wrightson (nzx:PGW) ("PGW") have been confirmed and settlement of the sale to Heartland New Zealand ("Heartland") has been completed.
The purchase price paid to PGG Wrightson for the shares in PWF was approximately NZ$99.5 million (approximately US$84.7 million) being an amount equal to the adjusted net tangible assets of PWF. PGG Wrightson has entered into a distribution agreement whereby Heartland will offer financial products and services to PGG Wrightson's agri-clients. PGG Wrightson will in turn make referrals to Heartland from its network of farmer clients.
George Gould, Managing Director of PGG Wrightson, said the completion of the deal was an important milestone and marks the start of a significant new business relationship between PGG Wrightson and Heartland. "Both companies are passionate supporters of the agriculture sector, and together we represent a compelling client service proposition."
Xie Tao, Agria's Chief Executive Officer, said, "Coming just four months after Agria increased its shareholding in PGW to 50.01%, the completion of this transaction is an important strategic step for PGW accomplishing two key goals. It allows PGW management to focus on growing and enhancing value in its two core divisions of Agriservices and Agritech while also substantially reducing the level of debt on PGW's balance sheet both from the debt in PWF being passed to Heartland and from the consideration received by PGW."
About Agria Corporation
Agria Corporation /quotes/zigman/487479/quotes/nls/gro GRO +5.17% is a China-based agriculture company with operations in China and internationally. In China, we engage in research and development, production and sale of seed products, including field corn seeds, edible corn seeds and vegetable seeds. We own through Agria Asia a 50.01% equity interest in PGW, New Zealand's largest agricultural services company. PGG Wrightson reported turnover of NZ$1.2 billion (US$1.0 billion) for the twelve months ended June 30, 2011. For more information about PGW, please visit www.pggwrightson.co.nz . For more information about Agria Corporation, please visit www.agriacorp.com .
Safe Harbor Statement: This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Agria may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on Forms 20-F and 6-K, etc., in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about beliefs and expectations of Agria or PGW, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, those risks outlined in Agria's filings with the U.S. Securities and Exchange Commission and those risks outlined in PGW's filing with the New Zealand Stock Exchange. All information provided in this press release is as of the date of this announcement unless otherwise stated, and Agria does not undertake any obligation to update any forward-looking statement, except as required under applicable law.