Sinochem Lowers Offer on Nufarm
23 December 2009 SHANGHAI – Sinochem, or the China National Chemicals Import & Export Corp., has lowered its offer for Australian agricultural chemicals company Nufarm from US$11.44 per share to $10.54 per share, valuing the total company at $2.284 billion.
Sinochem made the decision after assessing the results of its due diligence. The Nufarm board is now seeking clarification on conditions relating to Sinochem’s revised offer and will review all options available to generate maximum returns for the company’s shareholders.
Sinochem made an unsolicited bid for Nufarm in July before making a firm offer in September. Regulatory approval will still be required before any transaction can go ahead.
In other Sinochem news, the company plans to sell $500 million worth of five-year dollar-denominated bonds on China’s interbank market Dec. 24.
The sale is the first batch of Sinochem’s planned $1 billion worth of dollar-denominated bonds. The floating-rate bonds will use the six-month London interbank offered rate as the reference rate, according to Sinochem. Agricultural Bank of China Ltd. and Bank of Communications Co. are the main underwriters.
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