Hong Kong, China
January 29, 2016
Agria Corporation (NYSE: GRO) (the "Company" or "Agria") today announced that its board of directors (the "Board") has received a preliminary non-binding proposal letter, dated January 28, 2016, from Mr. Guanglin Lai, executive chairman of the Company, and Brothers Capital Limited, a British Virgin Islands company wholly-owned by Mr. Lai (together with Mr. Lai, the "Buyer Group"), to acquire all of the outstanding ordinary shares of the Company not owned by the Buyer Group, including ordinary shares represented by American depositary shares (the "ADSs", each representing two ordinary shares), for $0.60 in cash per ordinary share, or $1.20 in cash per ADS. A copy of the proposal letter is attached hereto as Exhibit A.
The Board has formed a special committee consisting of three independent and disinterested directors, Lee Joo Hai, Sean Shao and Wah Kwong Tsang (the "Special Committee"), to consider the proposal. The Special Committee has retained Kirkland & Ellis as its U.S. legal counsel and intends to retain an independent financial advisor in due course to assist it in this process.
The Company cautions its shareholders and others considering trading its securities that the Board has just received the proposal letter and neither the Board nor the Special Committee has had an opportunity to carefully review and evaluate the proposal or make any decision with respect to the Company's response to the proposal. There can be no assurance that any definitive offer will be made, that any definitive agreement will be executed relating to the proposed transaction or that this or any other transaction will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law.
About Agria Corporation
Agria (NYSE: GRO) is a global agricultural company with three principal business segments: Seed and Grain; Crop Protection, Nutrients and Merchandise; and Rural Services. The Seed and Grain segment is engaged in research and development, production and sale of a broad range of seed products and trading of seed and grain products globally. The Crop Protection, Nutrients and Merchandise segment operates an extensive chain of retail stores that supply farm input materials. The Rural Services segment provides livestock trading, wool trading, irrigation and pumping, real estate agency and other agriservices.
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