Details have emerged of a stand-by credit facility Olam International agreed to provide New Zealand Farming Systems Uruguay as part of its takeover offer for the company.
Before it recommended the Olam offer to shareholders, Farming Systems sought comfort from the Singapore-based company that money would be available to continue farm development.
Farming Systems Chief Financial Officer Andrew Clark says the facility became public after it conditionally sold the Don Pepe farm in Uruguay, and needed to assure a Uruguayan bank to help release the property from its security.
Mr Clark says the public release of the letter changes little for shareholders.
Acceptances so far give Olam a 40.3 per cent stake in Farming Systems.
The credit facility is understood to be around US$7m.
