Uruguayan-based Union Agriculture Group (UAG) has decided not to proceed with making a takeover offer for a controlling stake in New Zealand Farm Systems Uruguay (NZFSU).
UAG intended to launch its formal offer early next week, but company chairman Juan Sartori has decided against making a bid above the current Olam offer of NZ $0.70 per share.
“We are a conservative company and we currently have other opportunities where we can apply our funds and resources in Uruguay at better terms. While we believe NZFSU was potentially very good for UAG and that we could make it a successful operation, the opportunity does not look so good for us at that price.”
Mr Sartori said UAG remained interested in working with NZFSU in Uruguay or with Olam, depending on the outcome of the Olam bid, and was happy to explore other opportunities for cooperation.
“I think that Uruguayan farmland is beginning to attract a premium and recognition from New Zealand and other significant international agri-sector nations that our country is a good place for investment. We remain interested in working with New Zealand or other international businesses in Uruguay or elsewhere in South America to continue growing UAG into a leading and successful agricultural company.”
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