PGG Wrightson is holding $20 million of New Zealand Farming Systems Uruguay (NZFSU) stock that had been due for placement with institutions but is "very confident" it will find a home for it shortly.
NZFSU announced yesterday its public offer - promoted by PGG Wrightson - had successfully
raised $105 million from farmers, institutions and retail investors for investing in dairy and beef farming in Uruguay.
That figure - $30 million above the $75 million sought - included $20 million worth subscribed for by PGG Wrightson for subsequent placement to institutions.
But the institutions had been unable to meet due diligence requirements over investing in NZFSU before the offer closed yesterday.
However NZFSU chairman Keith Smith said PGG Wrightson had "firm indications" of interest from various people wanting to take up all of the $20 million worth, although finalising the placements would take time.
Several investors were lined up to take shares from PGG Wrightson next week. But some investors would need to visit Uruguay in the new year as part of the decision-making process, Smith said.
PGG Wrightson CEO Barry Brook said he was not concerned at the situation.
"We're very confident in being able to place it."
There had been provision for oversubscription of $75 million of shares, meaning NZFSU could have taken in a maximum of $150 million, compared with the $105 million it got.
But Smith said he was very pleased with the result.
The $150 million maximum figure had been reasonably "arbitrary" and set to help ensure no one who wanted stock would miss out, he said.
