Norgate steps down as Wrightson chair

Thursday 23rd July 2009

Craig Norgate stepped down as chairman of PGG Wrightson, saying the nation’s largest rural services company needs an independent leader for the next stage of its growth.

Norgate will be replaced by director Keith Smith, who returns to the chairman’s role he held at Wrightson, before the 2005 merger with Pyne Gould Guinness that created PGG Wrightson. The shares fell 1% to 97 cents and have tumbled 25% this year.

The changes may help soothe concern about the relationship between PGG Wrightson and its 27.5% owner Rural Portfolio Investments, the investment vehicle of Norgate and the family of Baird McConnon, as the various entities have had to grapple with higher debt levels, stoking concern Wrightson shares may end up in play.

Norgate said managing director Tim Miles was now comfortably running the company after 15 months in the role, according to comments provided in a press release from public relations consultant Barry Akers.

The change of leadership “was a natural progression that would allow the company to identify the governance platform best suited to its next stage of development,” the statement read. “This would be carried out through a formal process to review board composition, currently under way.”

Wrightson had to raise funds including loan convertible to ordinary shares advanced to South Canterbury Finance, in order to settle its failed merger with Silver Fern Farms. It also has had to trim the value of its holding in NZ farming Systems Uruguay.

Norgate will remain a director of as Chairman of PGG Wrightson from October 2007 and was previously Deputy Chairman. He was a director of Wrightson at the time of the merger with Pyne Gould Guinness in 2005. He will remain a director and stay on the board of NZ Farming Systems Uruguay and Wool Partners International.

Businesswire.co.nz

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