Sell part, says firm | Rural

New Zealand Farming Systems Uruguay (NZFSU) said its board recommendation to shareholders is that they accept the raised offer from Olam International for at least part of their shareholding.

The company said yesterday that some media reports of its decision on Thursday had omitted the reference to the option of partial acceptance.

"For clarity, the board believes it is in the interests of shareholders for Olam to achieve a shareholding of more than 50 per cent, as this would provide certainty over the funding of the company and completion of the farm development programme," the company said.

"The board also believes that retention of a significant minority shareholding in the company is desirable, as this would enable Olam and other shareholders to share any future upside in the value of the company."

Last week Uruguay-based Union Agriculture Group (UAG) pulled out of the bidding for NZFSU, saying it had decided against making a bid above the current offer from Olam International of 70c per share.

Before Olam lifted its offer to 70c, from the 55c it was at previously, UAG had been intending to make a cash offer at 60c a share.