Take Olam deal, NZ Farm Systems shareholders told

Krishnan Venkataraman (left), vice president strategic investments and Vivek Verma, managing director coffee & dairy divisions for Singapore-based company Olam International. Photo / Steven McNicholl

NZ Farming Systems shareholders have been told by the company's directors to accept the takeover offer made by the Singapore shareholder Olam.

In an announcement to the NZX, the company said that after the withdrawal the of rival bid from Union Agriculture Group and assurances from Olam about capital raising and farming operations, it could now recommend shareholders take the deal.

"Olam will be a strong and committed cornerstone shareholder for NZS, and has the financial capacity and resources to support the growth of NZS through to completion of the farm development program," said the announcement.

The independent adviser's report prepared by Grant Samuel to evaluate the Olam offer put the share price range between 64.9 cents and 79.2 cents per share.

Olam's latest offer of 70 cents per share "lies comfortably within that range."

"Based on discussions with Olam your Directors are now satisfied that Olam can provide the funding certainty required in supporting the capital needs of NZS in a manner that is fair and equitable to continuing shareholders, and accordingly your Directors have discontinued their initiatives in respect of a new investor."

"Olam has also assured your Directors that it is committed to the existing strategy of intensive pastoral-based dairying and will keep an open mind on the potential returns from NZS' farms in the East of Uruguay."


- HERALD ONLINE