Nufarm extends talks on Sinochem $2.5-billion takeover offer
03 Dec 2009
Australia's agricultural chemical manufacturer Nufarm Ltd said yesterday that it had extended talks with China's state-owned Sinochem Corporation to 23 December 2009 and said that the Chinese conglomerate must complete the proposed takeover deal to the agreed price of $2.5 billion.
After Sinochem failed to meet a 3 December deadline to complete the transaction since it needed more details for its due diligence, Melbourne-based Nufarm has now extended the deadline for talks on a $2.5 billion takeover offer made in September by Sinochem for Nufarm. (See: Sinochem makes $2.5-billion takeover bid for Australia's Nufarm)
Nufarm chairman Kerry Hoggard today told shareholders at the company's annual general meeting that the company would continue to hold talks with Sinochem, as long as China's biggest chemical trader Sinochem was still offering $13 per Nufarm share.
Beijing-based Sinochem Corporation, part of the Fortune 500 Company, had entered into a heads of agreement with Nufarm on 29 September to acquire all of the issued ordinary shares in Nufarm for A$13.00 per share - a 17-per cent premium to Nufarm's last closing price.
Nufarm is one of the world's leading crop protection companies with manufacturing and marketing operations based in Australia, New Zealand, Asia, Europe and the Americas, and sells products in more than 100 countries around the world.
Nufarm had said that it would work with Sinochem until 3 December 2009 on an exclusive basis to negotiate a transaction implementation agreement, which would includes a five-week period in which Sinochem will undertake due diligence on Nufarm.