The rural services company revealed in a late afternoon statement that its major shareholder is seeking to replace three directors. Photo: Supplied
PGG Wrightson's major shareholder is moving to dump three directors and replace them with four of their own - including Alan Lai, a former board member who was banned by US authorities from involvement in public companies for five years.
The rural services company said in a late afternoon statement - after the close of the NZX - that Agria, a 44 percent holder in PGG Wrightson (PGW), had requested a special shareholder meeting.
It is seeking to replace independent directors Garry Moore, Sarah Brown - who is also deputy chair - and Charlotte Severne, with Lai, Wilson Liu, Vena Crawley, and Traci Houpapa.
The PGW board said it had engaged with Agria to try to change its mind.
"The PGW Board convened on 12 February and 13 February to discuss the notice and has continued to liaise with Agria to explore whether Agria would withdraw the request to enable a more constructive board transition to take place.
"Following further dialogue today, Agria has this afternoon confirmed that it will not withdraw the notice."
Lai was banned after cutting a deal with the US Securities and Exchange Commission (SEC) in 2018 after he was found to have engaged in market manipulation in Agria shares, which were listed on the NYSE at the time, with Agria also found to have engaged in fraudulent accounting.
Lai did not admit to the offences but paid US$400,000 and submitted to a five-year ban to settle the SEC legal action. Agria paid a US$3 million penalty.
The SEC action led to New Zealand overseas investment officials taking court action for breaches of good character rules required of foreign investors.
That resulted in Agria required to sell down its 50.2 percent, and penalties of $120,000 against Lai and $100,000 against Agria.
Last year another Agria chair and director on the PGW board, Lee Joo Hai, was sidelined for his involvement in a securities case in Singapore.
Australian rural services giant Elders has built a 12.3 percent stake, but said it has no plans for a takeover bid.