NZFSU turns down Olam's 55c a share takeover offer

New Zealand company preferred Uruguay's Union Agriculture Group's offer, saying that Olam's offer as too low.

The board of NZ Farming Systems Uruguay (NZFSU) has recommended shareholders do not sell their shares to Singapore food group, Olam International, which is proposing a 55c a share takeover offer.

NZFSU said it expected to issue a statement on a competing bid from Uruguay’s Union Agriculture Group (UAG), which has proposed a competing 60c a share offer, in mid September, according to a report in NBR.

The board said the offer from Olam was, among other things, too low. NZFSU also said there was a prospect that it would be able to raise new equity from a potential investor “on terms that are favourable to all shareholders.”

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