Singapore-based Olam International's offer on New Zealand Farming Systems Uruguay has closed after the commodity trader gained 78% acceptances from shareholders.
The final offer of 70c a share values the 78% Olam stake at $133 million and shares were on offer at 69c-70c yesterday, but with little trading.
Olam's total investment in the NZFSU takeover, which is now a subsidiary of Olam, was $120.3 million.
Craigs Investment Partners broker Chris Timms said while Olam had a controlling, more than 75% interest in NZFSU, it was likely to "bed in" its investment and not at present seek to fully acquire the company.
Olam is expected to inject up to $60 million into cash-poor NZFSU and possibly seek an equity raising estimated at $35 million to $55 million from shareholders in the future.
Mr Timms said while some shareholders would have held out for a possible advance on the offer, and others to retain some stake in the hope of a better share price in the future, some of those who sold may not have wanted to take part in a future equity raising.
Separately, Olam last week confirmed it was in merger talks with Louis Dreyfus Commodities, the world's largest rice and cotton trader, which, if the pair combined, would have net sales of about $US34 billion ($NZ46.1 billion).
NZFSU has successfully set up 16 New Zealand-style dairy farms in Uruguay, but large land purchases and consecutive financial losses of almost $38 million have left it short of an estimated $88 million it needs to convert a further 49 properties.
Additional reporting The New Zealand Herald.
