Uruguay-based Union Agriculture Group (UAG) has pulled out of its planned takeover bid for New Zealand Farming Systems Uruguay.

UAG and Singapore-based Olam had exchanged competing bids for a majority stake in NZFSU, which rejected Olam’s initial 55c a share offer as too low.

The Securities Commission has let New Zealand Farming Systems Uruguay’s infamous “fudge this” remark slide by, but the company still acknowledged the negative impact of the slip-up at its annual shareholders meeting today.

The comment was inadvertently left in the company’s financial results released to the NZX in late August, with NZFSU playing down the seriousness of the matter and blaming the inclusion on an administrative error.

New Zealand Farming Systems Uruguay (NZFSU) has signalled a breakeven cash flow in two years after posting a net loss of $US45.9 million today.

By then development expenses, particularly on infrastructure including irrigation and electricity networks, should be in place and on-farm profit based on higher stock levels, increasing milk production and better returns will rise.

The NZX-listed company was founded by PGG Wrightson and former PGG Wrightson chairman Craig Norgate and listed in 2006.