14 Oct 2008

Uruguay farm developer postpones fundraising plans

12:33 pm on 14 October 2008

New Zealand Farming Systems Uruguay is postponing plans to raise capital to buy more land, due to current market conditions.

In the meantime, the company says it will pursue debt funding to cover its needs, targeting an initial $US30 million, with a further $US50 million in the next six months.

The farm developer is owned by PGG Wrightson, which is still working to rescue its own capital raising plans so it can buy a half stake in Silver Fern Farms.

PGG Wrightson financial services group manager Michael Thomas says it's not the right time to raise capital for New Zealand Farming Systems Uruguay.

He says New Zealand Farming Systems Uruguay will wait until the market is more favourable before re-visiting its capital raising plans.

The company is due to hold its annual meeting on Thursday.