Shareholders in listed New Zealand Farming Systems Uruguay are urged to postpone any decision on selling their shares to Singaporean-based-based Olam International, which launched a $110 million takeover offer on July 19.
Olam's 55c per share offer to all shareholders, which closes on September 24, was prompted by its having purchased PGG Wrightson's 11.5% stake in NZFSU, taking Olam's share to almost 30%, but its offer to shareholders requires 50% acceptances.
Since the offer, NZFSU shares had risen from 41c to trade above the 55c offer price yesterday - an almost 35% rise in value.
Olam yesterday mailed its formal takeover offer to shareholders, prompting NZFSU's chairman John Parker to issue a statement urging shareholders to wait for its target company statement and full-year results on August 23, when the board will make its recommendations public and present an independent valuation on the offer, from Grant Samuel.
"The offer document from Olam contains a number of comments and assertions with which your board disagrees," Mr Parker said yesterday.
Following the offer, Olam warned shareholders that if the takeover was unsuccessful, NZFSU may have to implement some capital-raising to continue development of its Uruguay-based portfolio of dairy farms.
