BEIJING, Aug 12, 2008 (MARKET WIRE via COMTEX News Network) -- Agria Corporation (NYSE: GRO) (the "Company" or "Agria"), an
innovative China-based agri-solutions provider, today announced that
its Board of Directors has authorized the Company's repurchase of up
to US$10 million of its outstanding ADSs from time to time on the
open market over the next 24 months. The timing and amount of any
repurchase will be determined by the Company's management, based on
market conditions, ADS price and other factors, and will be subject to
the restrictions relating to volume, price and timing under applicable
law, including Rule 10b-18 under the Securities Exchange Act of 1934.
The repurchase program may be expanded, suspended or discontinued at
any time without prior notice.
Kenneth Hua Huang, Agria's chief executive officer, said, "We believe
that at current price levels, Agria's ADSs are an attractive
investment for the Company. Our ADS repurchase program reflects our
continued confidence in Agria's business strategy, growth prospects
and our commitment to creating shareholder value. Importantly, the
repurchase will not affect our commitment to investing in organic
growth initiatives and to pursuing accretive acquisitions."
As of June 30, 2008, Agria had cash and cash equivalents of RMB 1.28
billion (US$187.3 million), with total bank borrowings of just RMB
8.8 million (US$1.3 million). As of June 30, 2008, Agria had
approximately 63.2 million ADSs outstanding on a fully diluted basis,
with approximately 60% held by insiders. Each ADS represents 2
ordinary shares.
About Agria Corporation
Agria Corporation (NYSE: GRO) is an innovative China-based
agri-solutions provider focusing on research and development,
production and distribution of three different types of upstream
agricultural products. Its diversified portfolio of products
comprises corn seeds, sheep breeding and seedlings, including
proprietary products. The Company has access to approximately 27,000
acres of farmland in seven provinces and its extensive distribution
network provides direct or third party distribution in 14 provinces.
For more information about Agria Corporation, please visit
www.agriacorp.com.
Safe Harbor Statement:
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "confident" and similar statements. Agria
may also make written or oral forward-looking statements in its
periodic reports to the U.S. Securities and Exchange Commission on
Forms 20-F and 6-K, etc., in its annual report to shareholders, in
press releases and other written materials and in oral statements
made by its officers, directors or employees to third parties.
Statements that are not historical facts, including statements about
Agria's beliefs and expectations, are forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties.
A number of important factors could cause actual results to differ
materially from those contained in any forward-looking statement.
Potential risks and uncertainties include, but are not limited to,
those risks outlined in Agria's filings with the U.S. Securities and
Exchange Commission. All information provided in this press release
is as of the date of this announcement unless otherwise stated, and
Agria does not undertake any obligation to update any forward-looking
statement, except as required under applicable law.
Contacts:
In China:
Matt Feng
Investor Relations
China Tel: 133-1130-0320
matt.feng@agriacorp.com
In the U.S.:
David Pasquale
Senior Vice President
U.S. Tel: +914-337-1117
david.pasquale@agriacorp.com
SOURCE: Agria Corporation
