Nufarm bids for Aussie agri-business

By Phil Boeyen, ShareChat Business News Editor

Wednesday 22nd November 2000

Trans-Tasman chemical company Nufarm (NZSE: NUF) is making a market bid for struggling Australian agri-business company IAMA.

Nufarm already owns just under 20% of IAMA and is making a market offer of A$1.30 for the rest of the shares via its subsidiary company Nufarm Investments.

Nufarm bought around 7% of the Australian rural merchandiser in 1998 at A$2.00 per share, and increased its stake earlier this year at A$1.30 per share.

At the time MD Doug Rathbone said the company had no intention of increasing its stake to over 20%, however he says the company is no longer content to stand on the sidelines as the company is restructured.

"As a shareholder of IAMA and a major supplier of inputs to the rural community, Nufarm has become increasingly concerned that the uncertainty surrounding IAMA's future is having a negative and destabilising impact on IAMA's business and is eroding the value of IAMA."

"Our objective is to be in a position where we can directly influence the rationalisation process and facilitate a restructuring which adds value for IAMA shareholders and results in a more efficient distribution sector."

Mr Rathbone says Nufarm will work with all parties to identify the most viable long term option for IAMA's future and remains open minded as to which parties will be involved and what structure will result.

A competitive rural distribution sector in Australia is seen as being in the best interests of Nufarm, which could see its margins under threat if the market consolidated.

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