[6 August/Stuff]

PGG Wrightson Limited has agreed to sell its seed division to DLF Seeds for $421 million. The deal was subject to shareholder and Overseas Investment Office approval. PGG Wrightson said the sale amount exceeded the book value of the net assets of the division. The deal followed a review of the company. It was New Zealand’s largest agribusiness services business. Its Chief Executive, Ian Glasson, said the sale would mean business as usual for the company and its customers. DLF Seeds Chief Executive, Truels Damsgaard, added PGW Seeds was the leading temperate forage seed player in the Southern Hemisphere and presented a real opportunity for value creation. PGG Wrightson Seeds had operations in New Zealand, Australia and South America. PGG Wrightson would still continue to provide a range of corporate functions and back office services to PGW Seeds for a transitional period and the deal is subject to regulatory approvals including approval from the Overseas Investment Office.