Olam International is cited to be under plans to tap its shareholders for seeking funds from them. The plan is aimed towards considering the deteriorated funding faced by New Zealand Farming Systems Uruguay, if the Singapore-based Company grabs a win on the acquisition deal.

As per the firm’s proposal document, the Singapore-listed food and ingredients conglomerate claims the Farming Systems to be highly implausible in establishing its operational targets. In addition, it outlines that it needs to introduce significant alterations to its strategy.

"It is Olam's view that given NZFSU's performance history and financial situation, equity is a more appropriate source of funding as compared to additional debt. Olam believes that NZFSU may need to call on shareholders to support one or more equity capital raisings", the document posited.

The acquisition deal will enable the firm to incur significant cost benefits along with a string of others advantages of backward integration into dairy farming, the Singaporean Company outlined.

Olam is reported to offer its shareholders 55 cents apiece following its signing of a deal to acquire PGG Wrightson's 11.5% stake in Farming Systems, valuing its aim at over $134 million.

In addition, Olam cites that operating a business in Uruguay, would be highly cost effective, compared to running it in other countries.