Olam to turn to shareholders for raising capital

Move to replenish capital if it gains majority stake of NZFSU.

Olam International has signalled its intention to turn to shareholders to provide fresh capital for farm development should it gain a majority stake in New Zealand Farming Systems Uruguay (NZFSU).

That could include a pro-rata rights issue.

Its intention to go to shareholders for funding was contained in a letter to the NZFSU board released on Friday.
In the September 1 letter to the NZFSU board, initially kept confidential but made public at the request of the directors, Olam answered questions on how it would meet NZFSU's capital requirements and its view on selling surplus land.

Previously, NZFSU had said it needed $NZ85 million (S$83.41 million) to complete the conversion of its Uruguayan landholdings to New Zealand-style dairy farms.

View the full story in Otago Daily Times.