Investment advisers were enthusiastic but investors were less receptive to news NZ Farming Systems Uruguay has regulatory approval from the Central Bank of Uruguay for a proposed $NZ47 million bond issue in Uruguay.
Shares in the company closed yesterday down 5c at 45c.
NZFSU announced yesterday it would make a public bond offer of $NZ47 million (US30 million) in Uruguay, with the proceeds providing long-term debt financing to continue development of the company's dairy farms in the South American country.
ABN Amro Craig's broker Chris Timms said shareholders should take comfort the company has approval to raise capital which would allow it to resume its investment in the Uruguay dairy industry.
He wanted to see the interest rate, terms, and how well the offer would be accepted.
Forsyth Barr investment adviser Tony Conroy agreed it was positive news, but added that if the first tranche of bonds were successful, a second, $US30 million issue could be considered to meet the company's original development profile.
Mr Conroy said it had been a frustrating period of delays for the company, initially getting a Fitch A- rating, approval from the Uruguayan Government and now another six weeks while they issue a prospectus.
Added to that frustration was the effect of drought which in April forced the company to revise its forecast 2008-09 loss before interest and tax from $NZ17 million ($US11 million) to $NZ31 million ($US20 million).
