Farming Systems delays long-term strategy by 2 years as takeover looms
NZ Farming Systems Uruguay Limited says its longer-term farm development strategy will be delayed by two years to 2016 after a challenging year left milk production 10 percent below forecast.
"The board's view on the company's long-term profitability has not changed, with anticipated increases in expenses likely to be offset by increases in long term milk price and additional livestock revenue over the period, the company said in a statement to the NZX.
The shares ended the day unchanged at 74 cents and have gained about 14 percent this year.
Olam International, the largest shareholder with 85.9 percent, is offering to buy the remaining shares at 75 cents apiece.
Farming Systems said it expects a takeover offer document to be dispatched by Olam on Oct. 23. The target company statement an independent evaluation would be sent on Nov. 6.