Independent directors of New Zealand Farming Systems Uruguay recommend that shareholders accept a takeover offer from Olam International.
The Singapore food company, which already owns 86% of Farming Systems, is offering 75 cents per share for the remaining 14%.
An appraisal report by Simmons Corporate Finance says the offer is above its value range of 52 - 65 cents per share.
The independent directors says if shareholders don't accept, they may be asked to contribute to a proposed $US135 million capital raising, which would be worth 67 cents each.
They say shareholders may not be able to sell at that price in the future.
