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Nufarm ends Sinochem talks, deals with Sumitomo

Nufarm ends Sinochem talks, deals with Sumitomo

Farm chemicals producer Nufarm has rebuffed a revised takeover offer from China's Sinochem, agreeing instead to Japan's Sumitomo Chemical taking a 20 percent stake.
The rejection Tuesday comes a week after Sinochem Corp. cut its cash-per-share offer for Nufarm Ltd. to Australian dollars 12 per share from AU$13 offered in September. That shaved more than AU$200 million from the value of the deal, reducing it to around AU$2.6 billion ($2.3 billion).
It is the second time a Chinese company has failed in a bid to buy Nufarm. In 2007, a consortium led by China National Chemical Corp., or ChemChina, launched a takeover worth about AU$3 billion, but the plan fell apart before it could be completed.
"Sinochem's revised proposal is less attractive than the position which was agreed between the parties in September and does not provide certainty for Nufarm shareholders," Nufarm chairman Kerry Hoggard said in a statement.
Nufarm said the offer undervalued the Australian company and imposed some unacceptable conditions.
The Sumitomo Chemical Corp. proposal, by contrast, offers AU$14 per share and cooperation across a number of business areas, including research and development and distribution. Hoggard said the proposal placed "an appropriate value" on Nufarm.
The Sumitomo deal is subject to approval from Nufarm shareholders. Once completed, Nufarm will raise an additional AU$250 million through a share issue.
Nufarm's shares were up 3.1 percent to AU$10.89 mid-afternoon Tuesday. Its shares had been in a trading halt for a week at the company's request as it sought more information from Sinochem.


Updated : 2021-02-27 20:53 GMT+08:00