Nufarm Says Bids Below A$2.8 Billion will not be Accepted
While in talks with Chinese-state owned Sinochem, Australia's renowned chemicals firm Nufarm Ltd., made it clear on Thursday that any bids which value the company below A$2.8 Billion ($2.6 Billion) would not be accepted.
By Thursday, Nufarm had hoped that the deal would be closed on Sinochem's offer of A$13 per share put forward in September, but talk have been postponed till December 23 as Sinochem called for more information. The extension fueled speculation that the Chinese firm might just walk away from the deal, or pull the offer down, which led to a 9% drop in Nufarm's shares over a period of two days.
While Sinochem has shared that the company needs to review its price offer, Nufarm has made it clear on its end that any offers that value the company's shares at below A$13 would definitely be rejected. "We believe A$13.00 is a fair price for Nufarm, and that is the number we would recommend to shareholders", said Nufarm Chief Executive Doug Rathbone.
More information is currently being sought by Sinochem over long term forecasts and currency movement issues, Nufarm has confirmed.
No information by the chemical company has been disclosed on whether or not there are any other potential suitors.
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