21 Dec 2010

NZFS tapping Olam for $50 million loan

5:00 pm on 21 December 2010

New Zealand Farming Systems Uruguay is tapping majority shareholder Olam International of Singapore for a loan of $50 million.

The farm development company says it will use the loan to pay PGG Wrightson all its outstanding fees and buy out the management contract, as well as using it to develop its farms in South America.

NZFS chief financial officer Andrew Clark says the loan allows the company to move forward.

He says there is no change to a profit warning, issued in November, of a loss of $US16 million, compared to an earlier estimate of $US10 million.