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NZ Farming Systems loss lessens

Monday 23rd August 2010

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New Zealand Farming Systems Uruguay has reported a lower loss than last year and advised shareholders not to sell to Singapore-based Olam International.

The corporate farmer has reported a 42% lift in revenue to US$22.5 million, cutting its operating loss to US$10.4 million from US$16.4 million last year.

“The offer price is too low, and the Union Agriculture Group has advised it intends making a higher offer,” said NZFSU chairman John Parker.

He said Olam’s plans to change NZFSU’s business model are based on incorrect assumptions and has insufficient detail on development funding plans.

“There is no value in the offer price for significant factors that were unknown when the offer was made,” Parker said.

The company is in negotiations with other parties, including the prospect of equity from a shareholder with no requirement from them for control of the company, Parker said.

The shares fell 1.6% to 62 cents in trading today.

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