Olam International Acquires Additional Interest in New Zealand Dairy Farming Systems Uruguay
The increase in interest in NZFSU is part of Olam’s Dairy strategy to enhance its selective participation in dairy farming in low-cost producing countries that will provide a significant cost advantage.
18 May 2010 --- Olam International Limited refers to its earlier news release dated 1 September 2009 in relation to the acquisition of 35,050,856 shares at NZc 41 per share, which represented a 14.35% stake in New Zealand Farming Systems Uruguay (NZFSU), an operator of large scale Kiwi-style dairy farming operations in Uruguay. NZFSU is listed on the New Zealand Stock Exchange.
Olam has acquired an additional 10 million shares of NZFSU held by Rural Portfolio Investment (RPI) at a price of NZc 41 per share for a total consideration of NZ$4.1 million (equivalent to US$2.9 million). RPI was earlier placed under receivership by its bondholders and all the NZFSU shares held by RPI were sold by the receiver to Olam as part of its collateral liquidation process.
The additional shares purchased by the Company represented an additional 4.1% stake in NZFSU and following the acquisition, the Company now owns 18.35% stake in NZFSU. The increase in interest in NZFSU is part of Olam’s Dairy strategy to enhance its selective participation in dairy farming in low-cost producing countries that will provide a significant cost advantage. NZFSU continues to offer Olam a strategic platform to realise the growth potential from dairy farming in Uruguay.
The above consideration will be funded by the Company through its internal resources. The aforementioned acquisition is not expected to have any significant impact on the earnings of the Company and its subsidiaries for the financial year ending 30 June 2010. Save as disclosed, none of the Directors or substantial shareholders of the Company has any interest, direct or indirect, in the above transaction.
