27 Apr 2011

Takeover offer by Olam for NZFS

10:45 am on 27 April 2011

Olam International of Singapore wants to take full control of New Zealand Farming Systems Uruguay.

Olam already controls 78% of the company and is offering to buy the rest for 70c a share.

That is a 25% premium on the price the shares have been trading at for the last three months.

Olam says the latest offer gives shareholders another chance to sell at the same price offered last year - despite an increase in capital requirements and a deterioration in Farming Systems' outlook since then.

Olam says the offer will also give shareholders an opportunity to sell, before they are called on to contribute more money.

NZ Farming Systems warned in November that reduced milk volumes would probably lose it $US16 million this year, compared to an earlier estimate of $US10 million.

The company is urging shareholders not to sell while the offer is evaluated.