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Nufarm rebuffs Sinochem takeover
By Joyce Pan |
December 29, 2009, Tuesday
|
Online Edition
Online Edition
AUSTRALIA'S farm chemicals maker Nufarm today terminated Sinochem's takeover attempt in favor of Sumitomo Chemical's tender to buy a 20 percent stake, after China's largest chemicals trader trimmed its offer price.
This marked the second time a Chinese firm has failed to buy the Australian company after China National Chemical Corp failed to launch a A$3 billion (US$2.7 billion) bid in December 2007.
"Sinochem's revised proposal is less attractive than the position which was agreed between the parties in September and doesn't provide certainty for Nufarm shareholders," said Kerry Hoggard, Nufarm's chairman. "It is in the best interest of shareholders that discussions with Sinochem are now terminated."
Sinochem, the state-owned company, revised down the value of Nufarm at A$12 a share from an initial offer price of A$13. The total investment was reduced by 7.7 percent to A$2.6 billion.
Sinochem said on its Website: "We regret the Nufarm board rejected the price as we believe the price well reflects Nufarm's true value and we took into full consideration shareholders' interests."
Melbourne-based Nufarm has revised down its profit outlook for the third quarter as herbicide prices fall and sales decline. Nufarm shares have slid about 10 percent to close at A$10.86 today since Sinochem's proposed offer was announced on September 28.
Nufarm said it has agreed to sell its stake for A$14 a share to the Japanese company and will co-operate across a number of business areas.
This marked the second time a Chinese firm has failed to buy the Australian company after China National Chemical Corp failed to launch a A$3 billion (US$2.7 billion) bid in December 2007.
"Sinochem's revised proposal is less attractive than the position which was agreed between the parties in September and doesn't provide certainty for Nufarm shareholders," said Kerry Hoggard, Nufarm's chairman. "It is in the best interest of shareholders that discussions with Sinochem are now terminated."
Sinochem, the state-owned company, revised down the value of Nufarm at A$12 a share from an initial offer price of A$13. The total investment was reduced by 7.7 percent to A$2.6 billion.
Sinochem said on its Website: "We regret the Nufarm board rejected the price as we believe the price well reflects Nufarm's true value and we took into full consideration shareholders' interests."
Melbourne-based Nufarm has revised down its profit outlook for the third quarter as herbicide prices fall and sales decline. Nufarm shares have slid about 10 percent to close at A$10.86 today since Sinochem's proposed offer was announced on September 28.
Nufarm said it has agreed to sell its stake for A$14 a share to the Japanese company and will co-operate across a number of business areas.
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