Takeover bid faced by Nufarm
Chinese fertilizer and oil giant Sinochem is aiming to buy Australian-head quartered farm chemicals company Nufarm.
Nufarm NZ today said that the company's board has been approached by the state-owned Chinese company, in connection with the acquisition of the company, on a confidential, preliminary and incomplete basis.
The company continued that there was no surety that any agreement would be reached or that an offer or proposal would be put to Numfarm shareholders.
It was put forward by the board that only after considering all alternatives available to the company will it consider any offer or proposal it receives for a buyout.
Nufarm specified that shareholders would be kept fully informed, and, if in case anything materializes, the company will make further announcement.
Nufarm which produces a range of crop protection chemicals sold in around 100 countries has manufacturing bases throughout Australia and New Zealand, as well as the Americas, Asia and Europe.
Over past few weeks, there has been mounting speculation over Sinochem's approach, which has appeared after Nufarm cut its full year earnings guidance by 15%.
The company is hoping to see a net operating profit of $AU187 million in 2009.
The share prices climbed 12% before pulling back to $AU10.74 this afternoon, after confirmation of acquisition approach came from the Chinese company.
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