10 May 2011

Olam plans no change to Farming Systems strategy

7:58 am on 10 May 2011

Olam International plans to continue with business as usual if its takeover offer for New Zealand Farming Systems Uruguay succeeds.

The company controls 78% of the listed firm and is offering to buy the rest for 70 cents a share.

Olam's managing director of coffee dairy and financial services, Vivek Verma, says if shareholders accept the offer, the company would be delisted from the stock exchange.

However its business model would not change and the assets would not be split, he says.

Since Olam tabled its offer, shares in New Zealand Farming Systems Uruguay have surged to trade at 71 cents a share - more than the 70 cents a share Olam's offering.

Mr Verma says Olam still regards this as a fair offer and there'll be no increase.