NZ Farming Systems Uruguay seeks $50 million

NZ Farming Systems Uruguay wants to raise a minimum of $50 million of new equity capital to expand its operations in Uruguay.

The company is planning an institutional placement and considering making a non-renounceable rights offer to its shareholders.

The shares will be issued at $1.50, which is a substantial premium to the $1.00 per share pricing of the company's Initial Public Offer, which closed oversubscribed in December 2006.

NZ Farming Systems Uruguay chair Keith Smith says the capital raising will allow the company to expand its land holdings and farming operations, yielding administrative and operational economies that will benefit shareholders, and will deepen the company's share register.