Adama Agricultural Solutions reported that the M&A Panel of the China Securities Regulatory Commission (CSRC) has unconditionally approved its combination with Sanonda, paving the way for the consummation of the transaction, which is now expected in the coming weeks. Upon completion, the combined company will be floated on the Shenzhen Stock Exchange. The trading of Sanonda’s shares, which had recently been suspended during the CSRC’s final review process, resumed on June 2.
Adama’s combination with Sanonda is expected to create, in one coordinated move, the only integrated Global-China crop protection company, with combined 2016 sales of $3.35 billion. At its outset, it will be the sixth largest global crop protection company and the largest in China, as well as the first global one to be publicly traded on the flagship A-share market. In the context of the transaction, the combined company intends to raise around $250 million in new equity, which will be used to accelerate its growth. At current market prices, the combined company’s pro-forma equity is valued at approximately $4.6 billion, placing its pro-forma enterprise value at approximately $5.7 billion.
Una vez recibidas las aprobaciones corporativas pertinentes, la empresa combinada operará bajo el nombre y la marca ADAMA y será dirigida por el equipo de gestión global de Adama, a la que se unirán colegas de China comprometidos con la operación combinada de China. Las funciones centrales de la compañía combinada continuarán ejecutándose desde Israel, incluida la I + D global, el registro y las operaciones.
La combinación aún está sujeta a ciertas aprobaciones regulatorias adicionales, que se espera obtener en las próximas semanas.
Acerca de la transacción:
Hubei Sanonda Co. Ltd. contribuirá con alrededor de $300 millones en ventas, así como capacidades comerciales y operativas significativas, incluidas posiciones de productos competitivos que Adama ya ha comenzado a distribuir a nivel mundial y en China, como el insecticida clave ACEMAIN.®, que contiene el ingrediente activo acefato y herbicida SPRAYTOP®, which contains the active ingredient paraquat. The transaction will be accomplished through the issuance by Sanonda of approximately 1.82 billion new shares at a value of RMB 10.20 (approximately $1.54) per share, to Adama’s shareholder CNAC, in exchange for all the shares in Adama, which are valued for the purposes of the transaction at approximately $2.8 billion. The combined company’s shares will be listed on the Shenzhen Stock Exchange, providing access to RMB- and Hong Kong Dollar-denominated capital.
Goldman Sachs Gao Hua Securities y Guotai Junan Securities se desempeñan como asesores financieros para la transacción, y Global Law Office actúa como asesor legal.