Sumitomo increases stake in Nufarm 21.7 per cent

Sumitomo increases stake in Nufarm to 21.7 per cent

12:52 PM, 17th June 2011
Sumitomo increases stake in Nufarm to 21.7 per cent

TOKYO, JAPAN: Sumitomo Chemical Company Limited has increased its shareholding in Nufarm Limited to 21.7 per cent and that it plans to acquire up to an additional 1.3 per cent of Nufarm’s issued capital by exercising the right to purchase additional shares under Section 611 (9) of the Australian Corporations Act.

The company plans to purchase additional shares from the market within the next six months so that Sumitomo’s shareholding in Nufarm will reach approximately 23 per cent. 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.

Sumitomo completed a strategic investment in Nufarm in April 2010, acquiring 20 per cent of ordinary shares via a tender offer. 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.

In order to strengthen the relationship with Nufarm and to help expedite additional areas of collaboration, Sumitomo has decided to increase its stake in Nufarm.

Sumitomo has negotiated the purchase of 4,500,000 Nufarm shares directly from Doug Rathbone, Managing Director of Nufarm. An agreement to purchase those shares was executed after the close of trading on the Australian Stock Exchange yesterday, at a price of AU$ 5.28 per share.

(C) WOC News

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