NOIC confident of shares’ uptake

SHARE

The North Otago Irrigation Company is encouraging farmers to invest in the company and purchase shares before the offer ends on December 12.

NOIC has registered its Scheme Expansion Prospectus and Investment Statement, which should have hit the mail boxes of those who have expressed an interest by the end of last week.

As part of this, it is offering for subscription up to 7,969 ordinary shares in the company to farmers who own land within the NOIC command area.

NOIC needs at least $12 million from new share sales for the proposed loan from the Waitaki District Council of a maximum of $17 million to take effect.

NOIC chief executive Robyn Wells said she is confident they will get the amount of shares required for this as the expressions of interest they have already received have far exceeded their needs.

They have sent a prospectus to 70 people who expressed interest on top of their existing share holders, making a total of about 160 people.

Ms Wells said each share will cost $4200, 10 percent of which has to be paid up front, 40 percent by September 2015 and the remainder a year later.

“We like people to look at the documents as it’s a good opportunity.”

Waitaki District mayor Gary Kircher said he thinks farmers will get behind the scheme and invest in shares before the deadline.

“I’m reasonably confident given the initial interest.

“My understanding is the initial expression of interest given has been good.

“Of course that has to convert to people signing up.”

It is now “crunch-time and he would like farmers to talk to their advisors to “make the hard decision as to whether they’re going to be part of it.”

“As far as the council is concerned obviously we want to see this go ahead and get the 50 percent for it to proceed.

“We’ve just got to wait and see.”

In order to assist potential shareholders in their decision-making process, NOIC and the Pod Group Leaders have developed a series of on-farm information workshop field days.

The workshops will commence this week and are hosted by Richard Strowger and sponsored by Farmlands, ASB and PGG Wrightson respectively.

The first workshop will be held on Thursday, November 13 at Gareth and Sarah Isbister’s farm in Five Forks and is entitled “How to Make Irrigation Work”.

This workshop is primarily about changing farming systems and understanding the value created by adding irrigation for different farming systems.

On Thursday, November 20 a tour of the NOIC Scheme is offered, departing Weston Hall at 1pm. It is expected to take approximately four hours and will give potential irrigators insight into the behind-the-scenes operation of NOIC’s irrigation network.

The following week on Thursday, November 27, a workshop on Environmental Information is to be held at Dallas Newland’s property on Serpentine Road, Incholme.

Jodi Leckie and Susie McKeague will speak on how to mitigate environmental impacts and understanding the commitments, costs and expectations when entering into an Environmental Management Plan with NOIC.

Finally, before the offer closing date of December 12, an On-Farm Development workshop will be held on Wednesday, December 3 at John Ludemann’s farm situated at 126 Happy Valley Road, Maheno.

This will advise on converting dry land to irrigated land and will give an understanding of what to expect in the process.

Attendees will hear about the pitfalls and lessons as experienced by others who have gone through the on-farm development process and will learn where to go for help with developing their on-farm plans.

All of the workshops are scheduled to commence at 11am and lunch will be provided.

To attend any of the workshops, email stage2@noic.co.nz or telephone Louise McDougall at NOIC on 433 1201.

By RUBY HARFIELD