Singapore firm boosts stake in NZFSU

Craig Norgate. Photo / Simon Baker

A Singapore agriculture company has snapped up Craig Norgate's failed investment company's stake in New Zealand Farming Systems Uruguay, bringing its investment just shy of the 20 per cent that would trigger a takeover offer.

Olam International yesterday paid $4.1 million to buy Rural Portfolio Investments' 10 million shares from the receivers, increasing its stake in NZFSU from 14.35 to 18.45 per cent.

Olam, a company calling itself a "global leader in the supply chain management of agriculture products and food ingredients", had revenue of Singapore $7.48 billion ($7.65 billion) in the nine months to March 31.

Its website says it employs 8000 people worldwide and operates in 56 countries delivering 14 products including cocoa, coffee, cashews, shea nuts, sesame, rice, cotton and teakwood to over 4500 customers.

Olam became a shareholder in NZFSU last September by buying a 14.35 per cent stake from Australian fund manager Hunter Hall Investment Management.

Rural Portfolio Investments and Rural Portfolio Capital were placed into receivership on May 3 after Craig Norgate and the McConnon family failed to come up with enough money to top up an escrow account to meet the conditions of the trust deed for $60 million in preference shares.

Since then the receivers have also sold a 6.1 per cent stake, or 46.8 million shares, in PGG Wrightson for $25.2 million.

Shares in NZFSU yesterday closed up 2c to 41c. The company also issued a forecast saying its February guidance for earnings before interest and tax was unchanged.