NZ Farming Systems Uruguay places 39 million new shares

NZ Farming Systems Uruguay Limited has increased its issued capital to $162 million through private share placements to a range of local and overseas investors.

The company has placed 39 million shares, paid to 52 cents each and subject to a call of a further 50 cents in December this year. The total issue price is thus $1.02 per share, compared with $1.00 per share in the initial public offering, which concluded in December 2006.

The balance of the NZ Farming Systems Uruguay shares retained by PGG Wrightson Limited after the IPO to satisfy anticipated institutional demand (12.2 million shares) has also been sold.

The new investment will see Hunter Hall International Pty Ltd, an Australia-based international fund manager, become a 19 per cent shareholder in NZ Farming Systems Uruguay. Hunter Hall will hold the shares in its international and Australasian funds.

The Chairman of NZ Farming Systems Uruguay, Mr Keith Smith, said the new investment reflected strong continued interest in the company’s strategy of applying New Zealand farming systems and technologies in Uruguay. “The increase in our capital base will underpin the continued expansion of the company without diluting the holdings of the earlier investors,” he said. ”All the new capital will be invested to acquire farms in Uruguay and fund their development into New Zealand style dairy farms.”

NZ Farming Systems Uruguay currently has four farms – three near Young in Western Uruguay and one in the Rocha district in Eastern Uruguay.

“Our farm acquisition programme is progressing well and we expect to announce further purchases within the next few months. The company is well funded and we do not anticipate any further issue of shares until at least the end of this year.”

For further information contact:

Barry Akers
Senescall Akers Limited
09 309 5656
021 571 234