KEY POINTS:
Agricultural chemicals business Nufarm, formerly New Zealand company Fernz, has received a takeover offer of A$17.25 ($20.78) per share to be implemented via a scheme of arrangement.
The offer was made by a consortium comprising China National Chemical Corporation (ChemChina), The Blackstone Group and Fox Paine Management.
Additionally, Nufarm would pay a dividend of up to A30c per share to its shareholders.
The offer and the dividend values Nufarm at up to A$3 billion.
The Nufarm board has recommended that shareholders vote in favour of the scheme of arrangement.
Nufarm has entered into an exclusivity deed with the consortium to facilitate the negotiation of a transaction implementation agreement.
"We acknowledge the consortium's proposal which may lead to a transaction which realises fair value for Nufarm shareholders," Nufarm chairman Kerry Hoggard said.
"As contemplated, the transaction would combine Nufarm with certain agricultural chemical businesses of ChemChina to create the global leader on off-patent crop protection."
The consortium has proposed that Nufarm management continue to manage the combined operations of Nufarm and ChemChina.
Nufarm said the total consideration of A$17.55 represented a 27 per cent premium to Nufarm's closing share price on October 30, the day before significant takeover speculation of Nufarm shares.
Nufarm said the offer was non-binding and conditional and that there was no certainty that it would ultimately result in a formal offer to Nufarm shareholders.
Nufarm shares were still in a trading halt and last traded at A$15.60.
- NZPA
