BEIJING--(Marketwire - August 12, 2008) - 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
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.