Nufarm (NUF) reports its interim results for the period to the end of January this morning amid speculation it has become a takeover target for a Chinese company.
The ASX was told late yesterday that Zhang Hua, chairman of Fuhua Group, one of China’s biggest glyphosate producer’s and a supplier to Nufarm, had grabbed a 5.16% stake via companies based in the tax haven of the British virgin isles.
He said he and the companies had been buying Nufarm shares since November a of last year.
In the statement to the ASX, Mr Zhang said the transaction was “currently" intended as a financial transaction but reserved the right to increase or decrease the holding "from time to time".
“The holders have no current intention to seek control of Nufarm (via a takeover or otherwise), to request a board seat, or to control or influence the composition of Nufarm’s board or the conduct of its affairs," Mr Zhang said.
This is not the first time a Chinese company has had a go at Nufarm. Back in 2007 – as the GFC was descending on the world, China National Chemical Corporation (ChemChina) teamed with US private equity firms, Blackstone Group and Fox Paine Management III LLC, to make the offer.
Nufarm gave conditional support to a $3 billion takeover proposal from a private-equity backed consortium led by China’s largest state-owned chemical company. But the $12 a share offer was rebuffed.
Japan’s Sumitomo Chemical Company bough a 20% stake in Nufarm at $14 a share in 2009 after Nufarm. Sumitomo has since lifted its stake to 23% but under an agreement with the board it is understood it must either match a takeover bid or sell in to one.
Nufarm shares closed at $8.11 yesterday in Australia, up 0.75%.
