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NZFSU advises shareholders to keep shares for now

Fuseworks Media
Fuseworks Media

Wellington, Aug 30 NZPA - New Zealand Farming Systems Uruguay (NZFSU) is continuing to advise its shareholders to hold onto their shares for now, rather than sell into a takeover bid by Olam International.

On 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.

Today NZFSU said it was continuing to negotiate new equity funding terms with a potential cornerstone shareholder.

It was also talking to Olam to get greater clarity around funding parameters envisaged by Olam, and Olam's intended strategy for NZFSU if its offer was successful.

NZFSU said shareholders should wait until further information was available before deciding whether to accept the Olam takeover offer. The NZFSU board expected to be able to provide shareholders with a further update within the next week.

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