Sumitomo Chemical Increases Stake in Nufarm

Posted by Matt Hopkins|10 May 2011

Sumitomo Chemical Company Ltd. has increased its shareholding in Nufarm Limited to 21.7% and plans to acquire up to an additional 1.3% of Nufarm’s issued capital by exercising the right to purchase additional shares under Section 611 (9) of the Australian Corporations Act, according to a press release.

An agreement to purchase those shares was executed after the close of trading on the Australian Stock Exchange yesterday, at a price of A$5.28 ($5.70) per share, according to the release.
Sumitomo’s strategic relationship with Nufarm is progressing smoothly in such fields as distribution, development, manufacturing (formulation) and procurement and logistics, and synergies from the collaboration have already started to materialize.

Through the collaboration with Nufarm, Sumitomo will improve efficiency in its operations and strengthen its global crop protection businesses. The decision to increase Sumitomo’s ownership stake in Nufarm is a clear indication of Sumitomo’s confidence in Nufarm’s business and the strong growth prospects that exist for both Nufarm and Sumitomo, according to Sumitomo.

Sumitomo plans to purchase additional shares from the market within the next 6 months so that Sumitomo’s shareholding in Nufarm will reach approximately 23%, according to the company.