Contact Information: 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
Announcement of Senior Management Changes and Strategic Review
| Source: Agria Corporation
BEIJING--(Marketwire - September 14, 2009) - Agria Corporation (NYSE : GRO ) (the "Company" or
"Agria"), a China-based agri-solutions provider, today announced the
following senior management changes as part of its implementation of
strategic review:
1. Mr. Xie Tao has been appointed by the Board of Directors as the Chief
Executive Officer of the Company, effective September 14, 2009;
2. With the appointment of Mr. Xie Tao as the Chief Executive Officer, Mr.
Alan Lai will retire from his position as the Chief Executive Officer of
the Company, effective September 14, 2009. He will remain in the position
of Chairman of the Board of Directors of the Company;
3. Mr. Christopher Boddington has been appointed by the Board of Directors
as the Chief Financial Officer of the Company, effective September 14,
2009;
4. With the appointment of Mr. Christopher Boddington, Mr. Raymond Lo will
retire from his position as the acting Chief Financial Officer of the
Company, effective September 14, 2009. He will be a member of the advisory
panel of the Company.
Background to strategic review
The Company announced on June 25, 2009 that it would be late in filing its
Form 20-F for the fiscal year ended December 31, 2008 (the "2008 20-F") due
to delays in completing the preparation of its annual financial statements.
The delays were caused by (i) two investigations being conducted at the
direction of the Audit Committee of the Company, one of which is in
response to allegations made by a former employee of Primalights III
Agricultural Development Co., Ltd. ("P3A"), a consolidated affiliated
entity of the Company; and (ii) a delay in completing the valuation of the
Company's biological assets, including sheep and date trees, which is being
conducted by an independent valuation firm.
While substantial progress has been made on the investigations led by the
Audit Committee, the investigations have not yet been completed in part
as the investigators have not received full cooperation from the current
management of P3A. In addition, valuation of the Company's biological
assets is still ongoing, pending the adoption of appropriate valuation
methods. This is in part because P3A has not provided sufficient data
necessary for certain valuation method for our sheep inventory or
explanations for variations in useful life of date trees. As a result, the
Company is not able to estimate at this time when the investigations or the
audit will be completed or when the 2008 20-F will be filed. Nonetheless,
the Audit Committee is proceeding with these investigations with the
cooperation of the senior management of the Company, who have indicated
their intention to use their best efforts to ensure that the Company files
its 2008 20-F as soon as practicable.
Scope of strategic review
The changes in senior management being announced are part of the Company's
efforts to review its current business strategy and implement its new
strategy with a top-notch, experienced team of management. Upon joining
the Company, Xie Tao will lead the management team to conduct a
comprehensive strategic review of the Company. This review will
concentrate on developing and implementing effective investment and growth
strategies with the aim of enhancing the shareholders value. In addition,
Mr. Xie and Mr. Boddington will lead the Company's ongoing efforts in
pursuing strategic acquisitions and alliances both in China and
internationally.
Mr Alan Lai, Chairman of the Company, commented, "I am delighted that the
Company has been able to retain the services of Xie Tao, who until recently
was a senior partner at PricewaterhouseCoopers, an international accounting
and advisory firm. In his long career at PwC, he gained extensive
experience in helping both domestic and multinational companies in China to
achieve a turnaround when these companies found themselves in difficult
situations. I am delighted to pass the important responsibilities as the
Chief Executive Officer to someone with proven leadership qualities like
Xie Tao. I am committed to continuing to contribute to the Company as the
Chairman of the Board by drawing on my long, extensive business experience.
I believe that with Mr. Boddington and the rest of the management working
alongside Mr. Xie, the Company will weather the challenging times and
emerge stronger in the future. Raymond Lo has provided loyal services to
the Company and I am pleased that he has agreed to remain involved in an
advisory capacity."
Xie Tao, the newly appointed Chief Executive Officer, commented, "I am glad
to take up this position at this important juncture for the company.
I appreciate the challenges the Company's management is facing at this time
and welcome the opportunity to lead a new team in addressing these
challenges. I believe we need to focus the core strategy on creating value
for shareholders and implement this strategy by taking advantage of high
quality investment opportunities presented within and outside China."
Prior to joining Agria, Xie Tao engaged in advisory practice at
PricewaterhouseCoopers (PwC) for 20 years where he led PwC China market
corporate finance practice and served on the firm's governing board. Mr.
Tao has extensive experience in China related cross-border investments and
M&A and has helped structured many well-known China businesses. Mr. Tao
received his bachelor's degree in physics from Beijing University in China
and was a member of the UK Chartered Association of Certified Accountants.
Chris Boddington engaged in advisory practice at PwC for ten years with a
significant amount of time in China prior to joining Agria. Chris brings
extensive experience in domestic and cross-border transactions as well as
business restructuring. Chris holds a bachelor's degree in Aeronautical
Engineering from Kingston Polytechnic and is an ICAEW Chartered Accountant.
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. 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.