Nufarm to widen horizons

MELBOURNE - Chemicals group Nufarm, formerly Fernz Corporation, is seeking acquisitions around the world and may sell assets to pay for the right buy.

Managing director Doug Rathbone said the board should also consider a share buyback because shares were well below analysts' valuations of about $A5 ($6.03).

Nufarm shifted its headquarters and primary listing across the Tasman last January. This triggered a sell-off of its shares to a low of $A2.70.

But it entered the new S&P/ASX 200 index this week, which should help spark interest from Australian institutions, Mr Rathbone said.

Its shares ended trading yesterday at $A3.30, valuing the group at $A495 million. In New Zealand, they closed up 6c at $4.06.

Nufarm should consider a share buyback if the shares remained cheap after the company was more settled in Australia, Mr Rathbone said.

The group was looking to expand internationally - but had no buys imminent.

Mr Rathbone saw possible targets in Europe, North America, Brazil and Argentina, where Nufarm already has some business. The group had also considered purchases in Asia.

He did not reveal how much the company might spend but said it could use equity and its strong cashflows, or sell assets that were not core or were failing.

- NZPA