PGG Wrightson is New Zealand's biggest public rural services firm with retail, real estate, horticultural, livestock, and wool trading operations. File photo Photo: RNZ/Sally Round
Australian rural services giant Elders has bought a strategic 11.3 percent stake in PGG Wrightson.
It disclosed the purchase at $4.35 a share for a total $37.1 million after markets closed on Thursday.
Elders, one of Australia's largest agribusinesses, said the investment was part of its geographic diversification strategy.
"Elders does not currently intend to initiate a proposal to acquire control of PGW," it said in a statement.
PGG Wrightson shares have traded between $3.90 and $5.76 this year, but most recently have been trading just above $4.00.
Elders was a player in the primary sector in New Zealand through much of the 20th century, but sold its finance arm in 1999 to Hanover Finance, and then its remaining 50 percent stake in a rural services business in 2014 to Ashburton based business.
It reported a profit of A$162.9m (NZ$173.2m) for the year ended September, a rise of 8.7 percent.
PGG Wrightson is New Zealand's biggest public rural services firm with retail, real estate, horticultural, livestock, and wool trading operations.
In October, it said it expected full-year earnings to fall because of rising costs caused by inflation.
PGG Wrightson's cornerstone shareholder is Chinese controlled Agria with a 44 percent stake.