NZFSU bidder withdraws
BY MARTA STEEMAN
One of the bidders for dairy developer New Zealand Farming Systems Urugay has withdrawn.
Uruguayan-based Union Agriculture Group said this morning it had decided not to proceed with making a takeover offer for a controlling stake in New Zealand Farm Systems Uruguay (NZFSU).
It this month signalled an intention to offer 60c a share but was trumped this week by Singapore food chain giant Olam International which raised its bid to 70c a share from 55c and secured another 7 per cent stake taking its control of NZFSU shares to 37 per cent.
UAG intended to launch its formal offer early next week, but company chairman Juan Sartori has decided against making a bid above the current Olam offer.
"We are a conservative company and we currently have other opportunities where we can apply our funds and resources in Uruguay at better terms. While we believe NZFSU was potentially very good for UAG and that we could make it a successful operation, the opportunity does not look so good for us at that price."
Mr Sartori said UAG remained interested in working with NZFSU in Uruguay or with Olam, depending on the outcome of the Olam bid, and was happy to explore other opportunities for cooperation.
"I think that Uruguayan farmland is beginning to attract a premium and recognition from New Zealand and other significant international agri-sector nations that our country is a good place for investment. We remain interested in working with New Zealand or other international businesses in Uruguay or elsewhere in South America to continue growing UAG into a leading and successful agricultural company."
- © Fairfax NZ News
Sponsored links
NZ's best farm land 'already sold off'
'Mondayising' could cost $200m
ANZ, Westpac can bank on their brand
Action launched over Feltex statement
Riots as Greece approves austerity
Stocks down despite Greek news
Suppression ends for SCF accused
Dollar up on Greek debt package
ANZ, Westpac can bank on their brand
