Sinochem lowers bid for Nufarm by A$2 million
22 Dec 2009
China's state-owned Sinochem Corporation, which had made a provisional $2.5-billion takeover bid for Australia's agricultural chemical manufacturer Nufarm in September, has now lowered the bid price by A$ 2 million after carrying out lengthy due diligence.
In September, China's fourth largest oil company had made a provisional $2.5-billion takeover bid for Nufarm-one of the world's leading crop protection companies with manufacturing and marketing operations based in Australia. (See: Sinochem makes $2.5-billion takeover bid for Australia's Nufarm)
Sinochem had offered A$13.00 per share - a 17-per cent premium to Nufarm's last closing price on 28 September. Under the revised offer, the Beijing-based Sinochem is now offering A$12 a share amounting to A$2.3 billion, after state-owned Sinochem failed to meet an initial deadline for a binding agreement.
After failing to meet a 3 December to complete due diligence, Beijing-based Sinochem had asked for an extension of the five-week due diligence period to 23 December, which was agreed by the board of Nufarm. (See: Nufarm extends talks on Sinochem $2.5-billion takeover offer)
Nufarm chairman Kerry Hoggard had told shareholders at the company's annual general meeting on 3 December that the company would continue to hold talks with Sinochem, as long as China's biggest chemical trader Sinochem was still offering $13 per Nufarm share.
Analysts had said in December that the fact that Sinochem has asked for more time to conduct due diligence indicates that the Chinese company is losing interest in the acquisition, which led to Nufarm's stock price dropping to $10.51 in the first week of this month, much below the A$13.00 offer made in September.
