Singapore-based agribusiness and food ingredients group Olam International has made a bid to take control of dairy group NZ Farming Systems Uruguay.
Olam has offered NZ$0.55 (US$0.39) a share for the 81.55% of NZ Farming that it does not already own, a bid worth NZ$109.6m.
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The offer “provides all NZFSU shareholders with the opportunity to realise a significant premium for their shares”, Olam said.
The company said its offer represented a 38% premium over the average at which NZ Farming’s shares had traded over the last three months.
NZ Farming’s second-largest shareholder PGG Wrightson, which has an 11.5% stake in the company, has already entered into a “lock-up” agreement with Olam and accepted the offer.
Olam plans to send its offer document within the next 14 to 30 days. The bid remains subject to certain conditions, including approval from New Zealand’s Overseas Investment Office.
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By GlobalDataThe offer for NZ Farming follows Olam’s move last month to buy ConAgra Foods business-to-business unit Gilroy Foods & Flavors.
