Board upheaval at PGG Wrightson
Listed rural trader PGG Wrightson chair Garry Moore and his deputy Sarah Brown have been voted out by shareholders.
Nichol, a former board member, was re-appointed with the backing of the two biggest shareholders – Agria and Elders - at the annual general meeting on Monday.
Agria Singapore holds a 44% stake while Australian agricultural trader Elders is the second largest shareholder with a 12.5% stake. In a shock move, Agria and Elders voted against the reappointment of chair Garry Moore and his deputy Sarah Brown at the AGM.
In a statement the PGW board says it wrote both major shareholders, seeking clarification on the rationale and strategic intent behind the directorship changes effected at the meeting.
In response, founder of Agria Corporation and former PGW board member Alan Lai says they view the recent developments “as an opportunity to refresh the board, with a focus on driving improvement and enhancing shareholder value”.
He says Agria remains committed to its long-term investment in PGW and will continue to support the company, its board, and management in our efforts to increase the value of our investment.”
Nichol adds that the PGW board remains committed to maintaining transparency and strong governance practices.
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“We will continue to engage constructively with all shareholders and stakeholders to ensure confidence in the company’s governance and strategic direction.”
Lai stepped down from the PGW board in 2018, following investigation for alleged securities law breaches in Singapore.
Nichol previously served as a PGW director and audit committee member from October 2013 to April 2019. During that time, he gained broad exposure to PGW’s operations and management team and developed a strong affinity for the business, PGW says.
Commenting on his appointment, Nichol says he’s delighted to have the opportunity to rejoin the board and serve as chair.
“I look forward to working with CEO Stephen Guerin and the wider PGW team to extend the proud legacy of the business and continue enhancing shareholder value.
“The agricultural sector is a cornerstone of New Zealand’s economy, and PGW plays a vital role in supporting the success of our farmers and growers. PGW is a longstanding and trusted name woven into the fabric of rural New Zealand, with a proud history of service and commitment. I am genuinely excited about the opportunity to help foster that legacy and contribute to PGW’s continued growth.
“I have great confidence in the management team and feel strongly supported in stepping into this role. Without that confidence, I would not have accepted the appointment. Together, I believe we can continue to strengthen PGW’s position as New Zealand’s leading rural services business.”
PGW shares have continues to slide - from $2.57 on October 10 to $2.50/share on October 14. Around midday on October 16, it was hovering around $2.41/share.
