Singapore-based Olam International was not expecting so many shareholders to sell to its successful takeover bid for NZ Farming Systems Uruguay.
Olam's offer of 70c a share closed on Friday with acceptances for 59.5 per cent of shares - taking the company's total holding to 78 per cent.
The takeover bid for NZX-listed NZ Farming Systems had been conditional on having more than half the shares.
Olam managing director of coffee and dairy divisions Vivek Verma said the company had not really thought about trying to buy the remaining shares.
"Our plans were to continue the listing and we were expecting to get anywhere between 55 to 65 per cent and we will continue on those plans as of now," Verma said.
"We're thankful to the shareholders who've accepted our offer and we are also very happy that a significant amount of shareholders have shown their confidence in us being able to turn the company around."
Olam hoped to complete an assessment of the business plan in three to four months time, Verma said.
NZ Farming Systems was set up by rural services company PGG Wrightson to develop dairy farms in Uruguay.
Singapore-listed Olam had been concerned about the suitability of land bought in the east of Uruguay, an area which current independent directors had asserted was performing quite well, Verma said.
"That's one of the points under review as is the entire cap-ex plan for the company," he said. "But we're going into it with a fairly open mind and we'll look at whatever information is available and then decide, along with the independent directors.'
NZ Farming Systems has said it needed about US$60 million ($81 million) to complete the development of existing farms.
"We believe equity to be a better form of funding at this stage given it's still in the development stage and it's still got some time before it starts giving out much cash," Verma said.
All shareholders would have the option to take part in a rights issue.
"Depending on how we see cash flows coming in it could also be a mixture of equity and long-term debt, our inclination at this stage is that it should be more equity."
Olam would probably nominate four directors to the board and retain independent directors John Parker, Graeme Wong and John Roadley, he said.
The potential make up of the board did not leave a place for Murray Flett or Craig Norgate, both of whom were this month classified as independent directors following a six-month stand-down period subsequent to retiring as directors of PGG Wrightson.
"A lot of work needs to go in over the next couple of years before we begin to see the results," Verma said.
"It's still a good idea and it's still a good concept."
NZ Farming Systems shares closed down 4c yesterday at 62c.
Meanwhile, Olam is in merger talks with rice and cotton trader Louis Dreyfus Commodities, which could result in a group that would have net sales of US$34 billion in the 2009 financial year.
There were some broad trends forcing consolidation in the food sector, Verma said.
"On the one side there is a shortage of arable land, there is shortage of water," he said.
"On the other side you see large amounts of people in Asia and other developing countries who are just getting to a phase of development where there is enough spending power and therefore people want to consume more dairy, more nuts, more meats, better quality food."
Olam was traditionally a buyer and distributor of commodities but had invested beyond its core supply chain business into farming and processing.
Supply and demand would broadly speaking be more finely balanced and there would be increasing volatility across most commodities, Verma said.
"I think agriculture needs both the capital and the technology that larger companies can bring to it to really be able to feed the world going forward."
Takeover take-up a surprise for Olam
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