AGM's are of interest to investors because companies generally provide trading updates which gives some indication of how the business is tracking early in the new financial year.
However, takeover target Nufarm (NUF) also had something else to talk about – the merits of the nearly $3 billion offer it received just last month.
The proposal – which is from a consortium of companies including China National Chemical Corporation, the Blackstone Group and Fox Paine Management – is offering Nufarm $17.25 cash per share by way of a Scheme of Arrangement.
In addition, Nufarm would pay a dividend of up to 30c per share based on the company's earnings and cashflow prior to the acquisition.
"We acknowledge the consortium's proposal which may lead to a transaction," said Nufarm Chairman Kerry Hoggard.
"In dealing with this proposal your board has been – and will continue to be – mindful that any recommendation to shareholders will be based on the Board's desire to achieve fair value for Nufarm shareholders."
Mr Hoggard also said the first quarter of fiscal 2008 had been challenging for Nufarm due to the continuing drought in Australia. The less than stellar start to the new year comes after a disappointing year in fiscal 2007.
The company generated a net profit of $148.8 million for the 12 months ended 31 July 2007.
This included an amount of almost $28 million in non-operating profit, which was 7% short of the guidance to the market.
"The principal contributing factor to our below budget result was clearly the adverse climatic conditions here in Australia," said CEO of Nufarm, Doug Rathbone.
"This was highlighted by an $18 million fall in earnings before interest and tax in our Australian business."
Mr Rathbone said that although other regions had performed fairly well, this shortfall in Australia could not be recovered by the other markets.
"Whilst the company's geographical expansion has been important in mitigating climatic risks, shareholders will be aware that Australia still accounts for some 35% of our revenue and slightly more than that in operating profitability."
It was also a relatively quiet period for Nufarm's European businesses.
"While revenue growth was achieved in a number of European markets, overall profitability was down due to a combination of regulatory issues and seasonal factors."
Nevertheless, the company's North American businesses are tracking ahead of budget, with the US business in particular having a very strong start to the year.
Exceptionally strong commodity prices have created positive sentiment in the US agriculture sector, which has translated into additional business opportunities as farmers invest in protecting their crops.
"This is having a positive impact on sales of glyphosate, phenoxies, our imidacloprid product, 'Nuprid', and a range of other Nufarm products."
"I am very confident that this position can be maintained for the balance of the year and that we will see another excellent performance from our North American business."
Nufarm rose by 2 cents to close the day at $16.77.
