29 Jul 2010

Olam confident of backing for NZFS bid

7:22 am on 29 July 2010

The company making a $110 million takeover bid for New Zealand Farming Systems Uruguay says that it's confident that major shareholders will back the deal.

Olam International of Singapore, which owns 18.5% of NZFS, already has the support of PGG Wrightson, effectively giving it a 30% stake.

The bid of 55 cents per share has been deemed by many analysts as below market value.

But Olam's managing director of coffee and dairy products, Vivek Verma, believes it's a fair offer.

If Olam takes control of NZ Farming Systems Uruguay, he says it would attempt to make the company profitable within two years.

They include reviewing the land the company owns and the management contract held by PGG Wrightson.

ACC, which owns a 7% stake in Farming Systems Uruguay, declined to comment on the bid.