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No grand plan says the man. :angry:


Well, thats not what my banker friend told me.


Basically what he is saying is we don't really have a plan or a strategy because we don't look to the future. We just operate on a day by day basis. What a load of rubbish. It is obvious they are looking at JV's and cornerstones in the ag.tech area. Especially in dairy. Probably with the Chinese group led by May Wang.





PGGW looks to rejig operations


By MARTA STEEMAN - BusinessDay.co.nz


Leading rural services company PGG Wrightson (PGGW) may sell fully or partially some businesses not core to the group but there is "no grand plan".


Some of those are minor businesses and others such as real estate are larger.


PGGW, which has 40,000 farmer customers and $1.2 billion of annual sales, has categorised some of its non-core businesses as "step-outs" in a presentation it gave yesterday to shareholders and analysts.


PGGW managing director Tim Miles said the "step-outs" could change ownership but they should not be seen as up for sale.


Miles said he told the chief financial officer when they were putting the presentation together that "step-outs" would be interpreted as divestments "and that is not right".


PGGW communications manager Brent Melville told BusinessDay earlier that some of the step-outs might be sold or become part of a partnership where they were partly sold.


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  • 5 months later...

Great article on PGW and the relevance of its seeds business. She overlooks a couple of things though. That is the ability of scientists to "stack the seed" with various traits resulting in a product that is ostensibly a GE crop. She is obviously aware of this because of the Monsanto reference. And the "nationalization" of the Norgate stake in PGW when SCF was put in to statutory management.


This is a really big deal.


It is a big deal because it basically changes the possibilities of the target industry. For example, the forage rye grass that was developed in partnership with GEN and Ag.Research, changes the metabolism of a cow allowing it to manufacture more milk, produce less methane etc. It also means the grass needs less fertilizer.


The upshot is more production for less cost in an industry that is the backbone of rural NZ.


PGW with its seed business, Crafar farms, SCF's dairy interests all would be ideal partners for Ag.Research and Landcorp in any privatization plans John Key may have.




The Chinese-backed bid for 50.01 per cent of PGG Wrightson is really all about getting control of what happens to the rural services company's most undervalued asset - a seeds business that Agria believes could ultimately be leveraged to become a multinational rival to America's Monsanto.


This is the real game plan behind the play that Agria and its new partner New Hope have launched with an opportunistic move while the PGG Wrightson share price is depressed.


And it is also the reason why the New Zealand Government must investigate exactly what Agria and New Hope bring to the table before they make a decision on whether to allow the partial takeover to proceed.

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  • 2 months later...

On the 12th Agaria had 44.78%. Two days later, PGW board recommends the offer should be taken up by holders. Later the same day, Agaria claims they have 50.52%.


So in the space of two days someone somewhere sells them about 6% of the company. I didn't see it go through on market. And nobody knows what happened to the 20% when SCF got put in to receivership.


On the same day they reach their 50% target, the Chinese make their OIO application for the Crafar farms.


Call me naive, but do you think we will see some kind of tie up between Crafar farms, PGW and the SCF dairy holdings? I know GEN have been talking up putting some dairy assets in to their shell. Perhaps those notices today signal the green light for it.

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  • 9 months later...

Can't believe this isn't related to PGW if the Chinese want to own security of the supply chain. Including seed for grass to feed their herd with. Can't imgaine they stopped on just the dairy industry either. Throw in forestry, sheep and wool, a bit of horticulture and agriculture, not to mention human health and then we might have something.


Guess we will find out more next Friday.




The Crafar decision is a victory for economic rationalism over blind xenophobic nationalism. Long may the former reign.


Instead of bowing to whipped-up public pressure (which it can't do anyway without breaking the law and marring New Zealand's international reputation), the Government has stuck to its guns and allowed due process to triumph.


The approval for the Chinese bid by John Key's government is a welcome sign that he intends to hit his stride in his second term and make the most of the economic opportunities that are available to New Zealand.


Next Friday we'll hear more about the Government's plans. Good on Key for being bold

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When PFE and MRK bought Wyeth and Scherring it was China, NZ and Au. that held out against giving its approval until they had an undertaking from PFE and MRK to make some divestiture from their agricultural and vet. business units.


Can't imagine that isn't in the equation somewhere either.


People seem to forget the not insignificant footprint these companies have in the NZ agricultural scene.


Same with Bayer who have chosen to set up a centre of excellence for R&D here.


I think something big is going to happen next week and PGW can expect to gain considerably from it.



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  • 3 months later...

Interesting commentary here given the impasse at PGC and their PGW holding. Maybe that has to be resolved before Bayer take a stake in PGW.


FRANKFURT, April 25 | Wed Apr 25, 2012 10:26am EDT


FRANKFURT, April 25 (Reuters) - German drugs and plastics maker Bayer AG is close to making a multi-billion euro acquisition to bolster its healthcare division, three people close to the planned transaction said.


"A big announcement is imminent," one of the sources said, declining to specify the name of the target.


Bayer recently sounded out its debt financing options with banks to prepare for takeover opportunities such as one that may arise from Pfizer Inc's mooted exit from veterinary medicine, people familiar with the matter had said.


In late March, Bayer Chief Executive Marijn Dekkers said: "Every company of our size is looking for acquisition opportunities. You have to do it to remain competitive."


He has said his M&A focus would be on the healthcare and the genetically-modified seeds industries.


CEO Dekkers, who has a track record of big M&A deals like the creation of lab equipment maker Thermo Fisher, joined Bayer in 2011 and investors have been scouring for clues ever since as to where he plans to take the 148 year-old German drugmaker.


"Dekkers is keen to do something and it could happen within the next couple of days," one of the sources said.


A spokesman for Bayer, which is scheduled to announce first-quarter results on Thursday, declined to comment.


Bayer has been said to be weighing a bid for Pfizer's animal health unit, but Pfizer is leaning toward offering all or a stake in the unit to its own shareholders rather than selling it outright, because of a roughly $5 billion tax bill as well as antitrust scrutiny that an outright sale would trigger.


Bayer has said repeatedly that in case of a larger takeover it would exhaust all debt and equity financing options before considering a sale of its MaterialScience unit, which is the world's largest maker of plastics for car lights and sports goggles and of chemicals for padding and insulation foam



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  • 3 months later...

Interesting developments in this since last post with PGC. Wonder what Norgate is up to now.


PGC holders and their lawyers might want to consider what this decision means for them. Something quite monumental I am thinking.




Posted by Vicki Ammundsen, on August 9, 2012 Print Send to a colleague/acquaintance


The Court of Appeal has overturned the High Court decision in CIR v Newmarket Trustees Limited (2011) 25 NZTCÃÆâ€â„¢ÃƒÆ’ƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¶20-030 (the liquidations judgment). See Commissioner of Inland Revenue v Newmarket Trustee Limited [2012] NZCA 351




Newmarket Trustees is a corporate trustee that acts for a number of trusts. Newmarket Trustees is insolvent due to unmet tax liabilities in respect of one if the many trusts of which it is a trustee. Despite the company's insolvency, which was not in dispute, the High Court took a pragmatic approach and elected to exercise its residual discretion under s 241(4) of the Companies Act and dismissed the application. Factors taken into consideration by the High Court included the fact that no assets would be realised on the liquidation, there were no other creditors and the costs to the other trusts for which Newmarket Trustees acted if it were necessary for each trust to appoint a new trustee.


Court of Appeal approach


The Court of Appeal disagreed with the approach of the High Court, finding that the factors relied upon did not provide "any sufficiently compelling ground of principle or justice to overcome the general policy of the Companies Act with regard to insolvent companies" (see para 66).


The Court of Appeal took as its starting point, the recognition that the

Court has an overriding duty to esnrue that trusts are properly managed. Further noting that:


  • an insolvent trustee company, like a bankrupt trustee, will normally be considered unfit to be a trustee
  • the appointment or retention of a bankrupt trustee or an insolvent trustee company will not normally be in the best interests of the beneficiaries
  • a fundamental proposition of the law of trusts is that a trustee must be fit to discharge its functions or be liable to be discharged from office
  • wider public interests require the deterrence and removal of insolvent trustees
The Court of Appeal also considered the position in England and Australia and also referred to the fifth paper in the Review of the Law of Trusts, which considers the propriety of trustees servies being offered through trustee companies.


This decision, follows the earlier Court of Appeal decision in CIR v Chester Trustees Limited [2003] 1 NZLR 395.

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Does the cascade of the dominoes go, PGC to Perpetual Capital Managment to Rotorua Trust Perpetual Capital Fund Ltd to GEN to todays selling out for pittance.


Somehow I would not be surprised given the involvment of Sandy Maier doing another hatchet job again on his investors. The same way he did on South Canterbury Finance.

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  • 3 weeks later...

What value does PGW put on their seeds business after this purchase? Devgen still at R&D stage with no commercial revenue from it.


Syngenta AG (SYNN) agreed to buy Devgen (DEVG) for about 403 million euros ($523 million) as the Swiss maker of agrochemicals extends a move into seed products based on biotechnology.


Investors of the Belgian hybrid-rice seedmaker will get 16 euros a share, Basel-based Syngenta said. The price is 70 percent higher than DevgenÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s closing price yesterday. The asset will have a ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“very significant impactÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ on SyngentaÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s $500 million rice business, Chief Operating Officer Davor Pisk said in an interview today.


Syngenta, the worldÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s largest agrochemical maker, is matching BASF SE (BAS) and Bayer AG (BAYN) with the purchase of a biotechnology company. Devgen offers rice traits that have been engineered to resist disease, as well as other formulas for crop protection. For Syngenta Chief Executive Officer Mike Mack, itÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s a bet that DevgenÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s technology can be rolled out to eclipse research costs that have so far erased profit.


The Swiss manufacturer is paying a ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“hefty premiumÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ of 14 times estimated 2013 sales, and ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“the payback will take many years,ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ Patrick Rafaisz, an analyst at Bank Vontobel AG in Zurich, said in a note.


Syngenta rose as much as 0.9 percent to 347.50 Swiss francs and was trading up 0.4 percent at 3:25 p.m. in Zurich. The stock has gained 26 percent this year, valuing the company at 32.2 billion francs ($34.6 billion). Devgen soared as much as 68 percent to 15.88 euros and was 67 percent higher in Brussels.



Current ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¹Ãƒƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“FlavorÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Biopesticides and seeds are flavor of the month,ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ and ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“if you donÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢t have a position in a certain technology, you are going to be locked out,ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ Anton Ticktin, a partner with the Valence Group investment bank in London, said in a phone interview. ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“We definitely see there is M&A going forward in this area.ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ÂÂ


Syngenta management will give an overview of its strategy and outlook to investors and analysts on Sept. 24 at a capital markets day to be held in India. Devgen already has a presence in that Asian country, as well as in Indonesia and the Philippines.


The deal follows BASFÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s announcement yesterday that it plans to buy Becker Underwood Inc. for $1.02 billion as Kurt Bock makes his first major acquisition as chief executive officer with a move into biological seed treatments.



ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¹Ãƒƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“SeriousÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢ Bayer

Bayer, which this year purchased AgraQuest for $425 million, has ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“gotten seriousÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ about investing in rice and wheat, Sandra Peterson, head of the Leverkusen, Germany-based companyÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s crop-protection unit, said in an interview yesterday.


SyngentaÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s offer for Devgen is at a ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“very attractive and fair price,ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ and the Swiss company isnÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢t aware of competing bids, Pisk said.


Major shareholders with about 48 percent of the Ghent-based DevgenÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s stock support the deal, Syngenta said. Credit Suisse advised Syngenta on the transaction.


DevgenÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s RNAi crop protection business, in which Syngenta invested 22 million euros in May, is still at the research and development stage and has no commercial revenue, Pisk said. The business makes sprays which kill worms that attack carrots and potatoes.


Sales at Devgen totaled 25.5 million euros last year. The operating loss amounted to 6.3 million euros as earnings were burdened by research and development costs.


ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“We donÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢t expect in the next couple of years for Devgen to have a high share of our total rice business, but it will grow significantly over the mid-term,ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ Pisk said.


To contact the reporter on this story: Patrick Winters in Zurich at pwinters3@bloomberg.net


To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net

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