NZFS suitor gains OIO approval

NZ Farming Systems in Uruguay. Photo / supplied

Olam International, the suitor for NZ Farming System Uruguay's shares, has obtained Overseas Investment Office consent to take over the NZX-listed company.

The Singapore company, ranked in its sharemarket's top 40, currently has 37.02 per cent of NZFSU shares, and needs another 13 per cent to complete a takeover.

Yesterday, Olam's lift to 70 cents from an original 55 cents a share offer enticed the Accident Compensation Commission to sell its 7 per cent stake in the South American developer of New Zealand style dairy farms.

NZFSU chairman John Parker said shareholders should wait on the outcome of negotiations with an unknown third party prepared to put equity into the developer company without requiring control.

Parker said NZFSU originally underestimated the time and money that would be required to capital fertilise and install irrigation systems in the Uruguayan farms, but that an injection of equity would allow production levels to be boosted as had already been proven on its better performing farms.