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SINGAPORE: Commodities firm Olam International today raised the stakes in the battle to buy NZ Farming Systems Uruguay or N-Z-F-S-U.
It has increased the price for its takeover offer of NZFSU to 70 New Zealand cents per share.
That's higher than its original bid of 55 New Zealand cents a share.
The new offer is also superior to a rival bid put in by Uruguayan-based Union Agriculture Group, which made a takeover bid at 60 New Zealand cents per share.
Olam says it is revising its offer upwards as NZFSU's full year results released yesterday were in line with its expectations.
NZFSU had posted a net operating loss of 10.4 million US dollars, compared with a 16.4 million US dollar loss for the previous year.
Olam adds that NZFSU's status as an Uruguayan project of "National Interest" would provide fiscal benefits to NZFSU.
Olam announced its improved offer a day after NZFSU told shareholders yesterday that they shouldn't accept the Olam deal.
NZFSU had said that the initial Olam offer was too low.
It also says it may be able to raise equity from a potential investor on favourable terms.
But Olam says such a capital raising exercise involving a significant issue of new equity may be dilutive to existing shareholders and is unlikely to gain support for such a transaction.
NZFSU has yet to make a recommendation on the takeover offer by Union Agriculture Group. - CNA/fa
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