The New Zealand Farming Systems Uruguay (NZFSU) board is now
recommending that shareholders accept a raised offer from
Olam International.
As recently as Monday the company advised shareholders to
wait for further information before accepting the offer.
Last Friday Uruguay-based Union Agriculture Group (UAG)
pulled out of the bidding for NZFSU, saying it had decided
against making a bid above the current offer from Olam
International of 70c per share.
Before Olam lifted its offer to 70c, from the 55c it was at
previously, UAG had been intending to make a cash offer at
60c a share.
"Based on discussions with Olam your directors are now
satisfied that Olam can provide the funding certainty
required in supporting the capital needs of NZFSU in a manner
that is fair and equitable to continuing shareholders, and
accordingly your directors have discontinued their
initiatives in respect of a new investor," the company said
today.
Olam had also assured directors that it was committed to the
existing strategy of intensive pastoral-based dairying and
would keep an open mind on the potential returns from NZFSU's
farms in the east of Uruguay.
Previously NZFSU had said it was continuing to negotiate new
equity funding terms with a potential cornerstone
shareholder.
The company said the decision of directors in respect of
their own shareholdings may vary because of different
circumstances.
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