19 Jul 2010

Takeover bid makes sense to PGG Wrightson

6:02 pm on 19 July 2010

Shares in Farming Systems Uruguay rose by almost 30% on Monday, after Singapore's Olam International launched a $110 million takeover bid.

Olam International, which already owns 18.45% of Farming Systems Uruguay, is offering 55c a share for the rest of the company.

Farming Systems Uruguay is urging shareholders to hold off making a decision about selling their shares until they get an independent appraisal on the merits of the offer.

But the company's second largest shareholder, PGG Wrightson, has indicated it's prepared to sell its 11.5% stake.

PGG's spokesperson, Brent Melville, says the proposed takeover is in the best interests of PGG and its shareholders.