Olam offers to buy rest of NZ Farming at NZ 70 cts/shr

By FELDA CHAY


Olam International, which owns 77.98 per cent of NZ Farming Systems Uruguay (NZFSU), is offering to buy the rest of the shares it does not own at NZ$0.70 (56 US cents) each.

The offer price is the same price it offered when it launched a takeover bid for the dairy farming company last year.

The commodities supplier's offer means that it will be shelling out NZ$37.6 million for the 22.02 per cent of NZFSU shares that it does not own.

The offer, which is unconditional, reprepresents a 25 per cent premium over NZFSU's 3-month average trading price of NZ$0.56.

Said Olam in a statement: 'The offer gives shareholders another opportunity to exit at the same price offered in Olam's 2010 takeover offer, despite the increase in capital requirements and changes to the business outlook for NZFSU compared with the earlier NZFSU board's forecasts at the time of the previous offer.'

Shareholders can choose to accept the offer from May 6 onwards. The offer closes at 5pm on June 7. Olam will be despatching its offer document within the next 14-30 days.

Last year, Olam said that it wants to take over the reins of NZFSU to change its business models, which it said were 'based on what we consider incorrect assumptions'. The offer values NZFSU at NZ$171 million.