NZFSU hires Grant Samuel to assess Olam takeover proposal

Wednesday 21st July 2010 2 Comments

NZ Farming Systems Uruguay hired Grant Samuel & Associates to provide an independent assessment of Olam International’s takeover proposal.

The developer of dairy farms in South America advised shareholders to take no action until they have the target company statement and the independent adviser’s report.

Olam, a Singapore-based global integrated supply chain manager of agricultural products and food ingredients, yestersday offered 55 cents per share cash for NZFSU, a 34% premium to its last trading price of 41 cents, valuing the target at $134 million. The shares last traded at 54 cents.

The Singapore company bought an initial 14.4% stake in NZFSU last September, and scooped up a further 4.1% tranche from the receivers of Rural Portfolio Investments in May.

As part of the takeover, it has entered a lock-up agreement with PGG Wrightson to buy its 11.5% stake in NZFSU.

Businesswire.co.nz

Comments from our readers

On 22 July 2010 at 9:32 am Roger said:

I am very happy to be in partnership with OLAM. Next step is to be shot of Wrightson's mismanagment. ($1.50 to $0.38 in three years!)

On 22 July 2010 at 10:00 am Keith Brown said:

All i can say is PGWrightson must be in deep trouble to sell NZS shares at this price.They should front up and tell shareholders what's going on.