Press Release

    News Release – NZFSU Directors Recommend Shareholders

    Press release

    Olam International Limited (“Olam” or “the Company”) is pleased to note that the Committee of Independent Directors (“NZFSU Directors”) of NZ Farming Systems Uruguay (“NZFSU”) has recommended that shareholders of NZFSU accept Olam’s cash offer at NZ$0.70 per share for all of the shares in NZFSU that Olam does not already own (“the Offer”).

    In the Target Company Statement, the NZFSU Directors commented that Olam’s offer lies above the Independent Adviser’s valuation range of NZ$0.60 – NZ$0.69 cents per share. The NZFSU Directors also stated that they intend to accept the Olam Offer in respect of their own NZFSU shares.

    Vivek Verma, Olam’s Global Head of Coffee and Dairy, said: “the Independent Adviser’s range supports Olam’s message to NZFSU shareholders that this is an attractive price for their shares”. The Company also noted that the Independent Adviser had used a more aggressive long term milk price (US$0.34 – US$0.36 per litre) than used by NZFSU in its long term business plan (US$0.32 per litre). Mr Verma added: “Obviously, the valuation is very sensitive to the milk price assumption. The Independent Adviser has estimated that a 1 cent decrease in the milk price reduces the value of NZFSU shares by NZ$0.04 – NZ$0.08”.

    The Offer has been extended by one week to give shareholders sufficient time to consider all of the information now available to them and is scheduled to close at 5.00 p.m. on 14 June 2011 (unless further extended).

    Note:

    This release should be read and understood only in conjunction with the full text of Olam
    International Limited’s other announcements and releases lodged on SGXNET on the same
    subject.

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