Australian agrichemical firm Nufarm yesterday said it had stopped discussions with China’s Sinochem (中化) on a possible takeover, and would instead seek a strategic investment from Japan’s Sumitomo.
The development comes after state-owned Sinochem last week unexpectedly dropped its bid for Nufarm to around A$2.62 billion (US$2.32 billion) from the A$2.84 billion proposed in September.
“The Nufarm Board has carefully considered Sinochem’s proposal and has decided that it is not in the best interests of Nufarm shareholders to pursue Sinochem’s proposal,” the company said in a statement.
The Melbourne-based company said a proposed strategic investment from the Sumitomo Chemical Company provided better certainty for shareholders.
It said its board would unanimously recommend that Sumitomo acquire 20 percent of its shares for A$14 cash per share via a tender offer.
Nufarm would then undertake a A$250 million equity capital raising, the global crop chemical company said.
Nufarm and Sumitomo will also enter into an agreement to cooperate across a number of business areas, it said, including research and development.
“This investment and the resulting benefits to the business are expected to provide Nufarm with access to additional new products and increased opportunities to expand and strengthen Nufarm’s position in various crop segments and geographic markets,” chairman Kerry Hoggard said.
Under the original Sinochem proposal, the China state-owned company would have paid A$13 per share to acquire all of the issued ordinary shares in the company. But it revised the price down to A$12 on Dec. 21.
Nufarm said the lower offer undervalued the company while the proposal remained subject to numerous conditions, some of which it said were unacceptable.
Nufarm shareholders will vote on the Japanese company’s offer, which is subject to final approval by the Sumitomo board, at a meeting in March.
The development follows Nufarm’s conditional support, in late 2007, for a A$3 billion takeover from a private equity consortium, which included China’s state-owned ChemChina (中國化工). That takeover was derailed by the global financial crisis.
NO HUMAN ERROR: After the incident, the Coast Guard Administration said it would obtain uncrewed aerial vehicles and vessels to boost its detection capacity Authorities would improve border control to prevent unlawful entry into Taiwan’s waters and safeguard national security, the Mainland Affairs Council (MAC) said yesterday after a Chinese man reached the nation’s coast on an inflatable boat, saying he “defected to freedom.” The man was found on a rubber boat when he was about to set foot on Taiwan at the estuary of Houkeng River (後坑溪) near Taiping Borough (太平) in New Taipei City’s Linkou District (林口), authorities said. The Coast Guard Administration’s (CGA) northern branch said it received a report at 6:30am yesterday morning from the New Taipei City Fire Department about a
IN BEIJING’S FAVOR: A China Coast Guard spokesperson said that the Chinese maritime police would continue to carry out law enforcement activities in waters it claims The Philippines withdrew its coast guard vessel from a South China Sea shoal that has recently been at the center of tensions with Beijing. BRP Teresa Magbanua “was compelled to return to port” from Sabina Shoal (Xianbin Shoal, 仙濱暗沙) due to bad weather, depleted supplies and the need to evacuate personnel requiring medical care, the Philippine Coast Guard (PCG) spokesman Jay Tarriela said yesterday in a post on X. The Philippine vessel “will be in tiptop shape to resume her mission” after it has been resupplied and repaired, Philippine Executive Secretary Lucas Bersamin, who heads the nation’s maritime council, said
REGIONAL STABILITY: Taipei thanked the Biden administration for authorizing its 16th sale of military goods and services to uphold Taiwan’s defense and safety The US Department of State has approved the sale of US$228 million of military goods and services to Taiwan, the US Department of Defense said on Monday. The state department “made a determination approving a possible Foreign Military Sale” to the Taipei Economic and Cultural Representative Office in the US for “return, repair and reshipment of spare parts and related equipment,” the defense department’s Defense Security Cooperation Agency said in a news release. Taiwan had requested the purchase of items and services which include the “return, repair and reshipment of classified and unclassified spare parts for aircraft and related equipment; US Government
More than 500 people on Saturday marched in New York in support of Taiwan’s entry to the UN, significantly more people than previous years. The march, coinciding with the ongoing 79th session of the UN General Assembly, comes close on the heels of growing international discourse regarding the meaning of UN Resolution 2758. Resolution 2758, adopted by the UN General Assembly in 1971, recognizes the People’s Republic of China (PRC) as the “only lawful representative of China.” It resulted in the Republic of China (ROC) losing its seat at the UN to the PRC. Taiwan has since been excluded from