Shareholders have been advised for a second time not to sell their shares in New Zealand Farming Systems Uruguay, with directors saying they are negotiating with a potential cornerstone shareholder.
New Zealand Farming Systems Uruguay (NZFSU) directors yesterday urged shareholders to delay accepting Olam International's 70c a share takeover offer until the outcome "of funding options".
With Union Agriculture Group last week withdrawing from the race for NZFSU, shareholders have the choice of taking Olam International's takeover offer or waiting to see the offer from an unnamed potential cornerstone shareholder.
In their target company statement response to Olam's offer, NZFSU directors described the potential investor as "passive" and terms "that are currently acceptable to the board".
NZFSU directors said they were also in discussions with Olam to clarify funding parameters and their intended strategy for NZFSU should their offer not succeed.
Olam already has 18.45% of the company, has secured ACC's 7% stake and entered into a pre-bid lock-up agreement with PGG Wrightson to consider buying its 11.52%.
With Olam's offer not expiring until September 24, directors said there was no hurry for shareholders to accept it.
Directors expect to provide a further update for shareholders within a week.
