Supplier of agricultural chemicals Nufarm Ltd
(ASX:NUF) today announced that it has terminated discussions with Sinochem in relation to a takeover of the company, rejecting the revised $2.62 billion offer and instead agreeing for Japan’s Sumitomo Chemical to acquire a 20% stake in Nufarm.
The company has also announced that it will undertake a $250 million capital raising.
Nufarm says Sumitomo Chemical will acquire a 20% stake in the company from Nufarm shareholders for $14 cash a share via a tender offer.
The company says Sincohem’s revised offer is less attractive than the position which was agreed between parties in September and does not provide certainty for Nufarm shareholders.
Nufarm posted a profit of $79.88 million in fiscal 2009.
