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NZFSU advises shareholders to accept Olam offer

Fuseworks Media
Fuseworks Media

Wellington, Sept 2 NZPA - 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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