Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Farming Systems taps Olam for US$50 million loan

Farming Systems taps Olam for US$50 million loan

By Jason Krupp

Dec. 21 (BusinessDesk) - New Zealand Farming Systems Uruguay Ltd., the South American dairy farm developer, has tapped majority shareholder Olam International for a US$50 million loan.

The funds will be used for capital expenditure and working capital, and to pay Wrightson the remaining performance fee, management fees, and fees related to the buyout of the management contract, the company said in a statement today.

"The loan is a strong sign of Olam’s commitment and will allow Farming Systems to move forward immediately with key farm development such as electricity infrastructure improvement and irrigation pivots on our farms in the centre of Uruguay, and planned autumn application of capital fertilizer,” said chairman John Parker.

The loan comes after Singapore's Olam agreed to support Farming Systems' short-term funding requirements after it bought a 78% stake in the company in September for $120 million, and carries an interest rate, including withholding taxes, of 9% per annum which is repayable by Dec. 31, 2011.

Farming Systems, which was granted a waiver from seeking shareholder approval for the transaction, said the need for the loan was critical enough it could not spare the time to convene a shareholders' meeting.

It investigated alternative funding arrangements but could not source a loan on terms that were more favourable.

The shares last traded at 61 cents, and have risen 27% this year.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Retail: International Websites To Pay GST

New rules would be aimed at imported goods valued at or below $1,000. Customs would retain responsibility for collecting GST on imported parcels valued more than $1,000. More>>

ALSO:

High-Level Advice: PM’s Business Advisory Council Membership Announced

The Prime Minister’s Business Advisory Council brings together a mix of experts, six women and seven men with small to large business experience, from across New Zealand, to provide advice. More>>

ALSO:

Improving: Report Shows New Zealand Air Quality 'Good'

Our air 2018, produced by the Ministry for the Environment and Stats NZ, shows that while some previously known issues persist, progress has been made and levels of some pollutants are declining. More>>

ALSO:

Greenpeace: Govt Extends OMV Exploration Permit

The Government has just granted oil giant OMV a two-year extension to drill in the Great South Basin, despite issuing a ban on new oil and gas exploration permits in April. More>>

ALSO:

Collective Bargaining For Contractors: Working Group's Model For Screen Sector

A recommended model to allow collective bargaining for contractors in the screen sector has today been unveiled by the Government-convened Film Industry Working Group. More>>

ALSO:

Kauri Dieback: DOC Closing Tracks To Protect Trees

The Department of Conservation will close 21 tracks across kauri land to help prevent the spread of kauri dieback. An additional 10 tracks will also be partially closed and the open sections upgraded... More>>