Olam has 90% of Farming Systems Uruguay, can take it private
Singapore-based commodities company Olam International has succeeded in gaining more than 90% of takeover target NZ Farming Systems Uruguay, allowing it to take it private.
Olam had 90.19% of Farming Systems, enough to compulsorily acquire the rest, it says in a statement today. It offered 75 cents a share last month to mop up the 14% of Farming Systems it did not already own in its second attempt to get to 100% of the target after taking control last year.
Shares of Farming Systems last traded at 73 cents, giving it a market value of $178 million. The stock is up about 12% this year.
The company first listed in December 2007 with the aim of building a dairying business based on New Zealand farming techniques in the South American country, where land was comparatively cheap and the industry relatively undeveloped.
In August it announced it had missed its guidance with a full-year loss of $US7.6 million and signalled plans to raise $US135 million to repay a debt to its controlling shareholder Olam.