NZ Farming Systems Uruguay to raise another $50m

Public unlisted NZ Farming Systems Uruguay said today it was raising $50 million through an institutional share placement and a non-renounceable one-for-two rights issue to shareholders.

The shares will be issued at $1.50, a 50 per cent premium to the $1.00 per share pricing of the company's 2006 Initial Public Offer.

The company, which expects to list on the stock exchange before Christmas, plans to expand its Uruguay operations where it has bought 30,980 hectares of farms and farmland.

It said it had made significant progress in its development of the farms into New Zealand style intensive dairying.

Chairman Keith Smith said the price for the placement was set on the basis of a discounted cash flow analysis of the company's forecast revenues, discounted for country risk, and allowing for the placement occurring prior to listing.

PGG Wrightson has a 10.57 per cent shareholding in NZ Farming Systems Uruguay and manages the company under contract.

Mr Smith, who has just returned from Uruguay, said plans were proceeding better than expected.

Australia's Hunter Hall Investment Management has a 19.9 per cent in NZ Farming Systems Uruguay.

- NZPA