PGW has paid off its bank debt already and is now assessing options for the capital return, Rodger Findlay said on his first day as a director and chairman of the rural services group.
The sale provides significant value for PGW stakeholders while also enabling the PGW seeds business to benefit from being part of the international DLF Seeds operation, he said.
The seeds business will have an ongoing distribution relationship with PGW’s rural servicing division.
The focus is now on ensuring a smooth transition to separate the business structures, Findlay said.
PGW directors will reset the company’s debt position suitable for the continuing business.
Half the former board has remained in place so there might not be a lot of change from earlier statements about the scale of the capital return. They indicated an after-tax profit of about $120m would be made from the sale, with the possibility of a total return of up to $292m to shareholders.
Biggest shareholder Agria is represented on the board by Joo Hai Lee and U Kean Seng with Ronald Seah continuing as an independent director. David Cushing and Sarah Brown joined the board at the same time as Findlay and all are regarded as independent.
Former deputy chairman Trevor Burt and directors Bruce Irvine and John Nichols retired from the board on Tuesday.
PGW shares rose 2c to 55c on the NZX after the sale completion was announced.
