Singapore, July 18, 2010 – Olam International Limited (the “Company” or “Olam”) today announced that it has notified NZ Farming Systems Uruguay Limited (“NZFSU'”) of its intention to make a cash offer at NZ$0.55 per share for all of the shares in NZFSU that it does not already own (“the Offer”).
Olam is currently the largest shareholder in NZFSU with an 18.45% shareholding following the purchase of shares in NZFSU in September 2009 and May 2010.
The Offer is subject to certain conditions, including Olam achieving a minimum 50.1% shareholding in NZFSU post the Offer and the approval by the Overseas Investment Office.
Olam’s offer price of NZ$0.55 cash per NZFSU share represents a 38% premium over the 3-month average trading price of NZ$0.401 and provides all NZFSU shareholders with the opportunity to realise a significant premium for their shares. If Olam receives full acceptance of the Offer, its shareholding in NZFSU would increase from 18.45% to 100% at an additional investment of NZ$109.6 million (US$78.9 million).
This additional investment will be funded by the Company through a combination of internal accruals and borrowings.
The Offer has the support of NZFSU’s second largest shareholder, PGG Wrightson Limited (“PGW”) who holds 11.5% of NZFSU shares and is New Zealand’s leading rural services company. Olam has concurrently entered into a “lock-up” agreement with PGW whereby PGW has agreed to accept the Offer in respect of its entire shareholding.
Subject to the success of the Offer, Olam would anticipate undertaking a review of NZFSU’s strategy and capital requirements in a timely manner.
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