Nufarm’s Rathbone Sells Off Stake
3 February 2014 Nufarm’s managing director and CEO, Doug Rathbone, announced on Jan. 31 that he sold the majority of his shareholding in the company and entered into a derivative transaction with respect to a portion of the remaining shares held by him and his associated family entities.
The purpose of sale is to complete the refinancing of Rathbone’s personal and family business interests — the Rathbone Wine Group — at the request of his primary financier.
Rathbone said the move does not signal his departure from the company. “[Major shareholder] Sumitomo Chemical have been in touch to make sure I’m committed and I am committed,” he told The Australian Financial Review.
Rathbone sold a total of 8,382,940 Nufarm shares at $3.80 per share — representing about 3.18% of the company’s issued shares.
Following the sale, he and his associated family entities will hold 3,348,241 shares, which is 1.27% of Nufarm’s issued capital. Rathbone also entered into a “collar” derivative transaction involving 2,854,288 shares. Under terms of the collar, Rathbone will remain the beneficial owner of the shares and will retain material potential capital growth in the value of the shares. To hedge the collar, Credit Suisse International sold 2,283,430 shares at the same sale price.
Rathbone said, “I am pleased to have resolved the refinancing of my personal and family obligations after having explored a range of alternatives over several years.”
“After having devoted more than 30 years to help build Nufarm into a leading global crop protection company, I maintain a strong commitment to the Nufarm business and will continue to devote my full attention to the leadership of the company.”
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