Chinese confirm Nufarm takeover bid

Talk of a Chinese takeover is now a reality for Australian herbicide maker Nufarm.

Today Nufarm announced it entered in a Heads of Agreement with the Chinese state-owned Sinochem Corporation. In July, Nufarm confirmed the Chinese company was interested a takeover.

The agreement relates to a non-binding proposal for the Chinese company to buy all of the issued ordinary shares in Nufarm for $A13 each.

Nufarm’s market value is about$A2.4 billion.

Nufarm, which has reported a slump in its farm chemicals sales, reported a 42% fall in its net profit last week to $A79.9 million for the year ending July 31. The company’s final dividend would be A15c per ordinary share.

The heads of agreement allows Nufarm to work exclusively with Sinochem until December 3 to negotiate the takeover.

Sinochem needs to undertake due diligence enquiries in the meantime and seek its own board approval, along with Nufarm’s.

Provided this happens, the Nufarm board has already indicated it would unanimously recommend the proposed acquisition.

Sinochem said earlier this year that a Nufarm acquisition was one of a number of strategies it was considering to expand its global reach.

This is the second attempt a Chinese company has attempted to buy Nufarm.

At the end of 2007, China National Chemical Corpo, backed by buyout fund Blackstone Group, ended talks to buy the company for $A3 billion. No reason was provided.


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

Comments & Questions

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.6629 0.0012 0.18%
AUD 0.9372 0.0024 0.26%
EUR 0.5931 0.0023 0.39%
GBP 0.4586 0.0001 0.02%
HKD 5.1639 0.0089 0.17%
JPY 76.4510 -0.0190 -0.02%

Commods

Commodity Price Change Time
Gold Index 1188.8 31.140 2016-02-08T00:
Oil Brent 33.6 -1.160 2016-02-08T00:
Oil Nymex 31.6 0.810 2016-02-08T00:
Silver Index 15.4 0.650 2016-02-08T00:

Indices

Symbol Open High Last %
NZX 50 6153.8 6153.8 6153.8 -1.34%
NASDAQ 4288.0 4301.5 4363.1 -1.82%
DAX 8980.7 9041.9 8979.4 0.01%
DJI 16147.5 16147.5 16205.0 -1.10%
FTSE 5689.4 5739.2 5689.4 0.45%
HKSE 19287.4 19397.9 19183.1 0.55%
NI225 16666.8 16668.7 17004.3 -5.40%