Another deal for the record books may be on its way, as Nufarm and China’s Sinochem Corporation enter exclusive negotiations towards what would be China’s biggest takeover in Australia.
Yesterday Nufarm announced an agreement with Sinochem to work on an acquisition proposal under which Sinochem would acquire all ordinary shares in Nufarm for $13 per share, valuing the company at $2.8 billion. If debt is included, the offer is worth $3.8 billion.
The deal must be signed off by regulatory bodies here and in China before shareholders can vote. As the first major non-mining deal with China, this is being seen as a test case for the Foreign Investment Review Board (FIRB).
Nufarm shares leaped up yesterday following this announcement, and closed at $11.96.
Nufarm Limited. ASX Code: NUF
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For more on this news story:
- The Age: “Chemistry’s right as China ogles Nufarm”
- Perth Now: “China’s Sinochem makes $2.84bn play for Nufarm”
