NZ Farming Systems Uruguay is considering raising $US120 million from existing shareholders to repay debt and fund further development.
The company plans to raise the funds through a rights issue of ordinary shares, and will seek shareholders approval to do this at a special meeting on 4 November in Auckland.
The new shares will be offered at a price of 70 cents per share each.
NZ Farming Systems says it will use the funds to pay an $US85 million debt to majority owner, Olam, which is due to be repaid by December.
The company says if shareholders do not approve the rights issue, it will seek their approval to increase its existing short term loan facility from Olam to $US110 million and extend it for another year to allow other financing options to be considered.
