Friday 15th May 2009 |
Text too small? |
Nufarm, the farm chemicals company whose products include Roundup weed killer, plans to raise around A$300 million selling shares to institutions at a discount to repay debt.
The manufacturer is offering 26.7 million shares in an underwritten placement at A$11.25 apiece, a 9.9% discount to the last trading price.
Managing director Doug Rathbone will separately sell 1.75 million shares at the same price, raising A$19.7 million. He will remain the company’s largest shareholder, with about 11.3% after the transactions.
“The outlook for the global agriculture industry remains highly attractive and Nufarm is extremely well-placed to capitalise on additional opportunities as it pursues its growth strategy,” Rathbone said in a statement. The new capital “will result in lower debt, increased headroom under existing credit facilities, a stronger balance sheet and a reduced reliance on short-term financing requirements."
Shares of Nufarm have advanced 33% in the past three months though the shares peaked at A$18.33 in the past 12 months. The stock is rated ‘outperform’ based on the average of 10 estimates collated by Reuters. There were three ’buy’ ratings, four of ‘outperform’ and three of ‘hold.’
The shares are halted for the institutional placement today and will resume trading on May 18.
Nufarm’s forecast 2009 net debt will be about A$550 million after the placement while gearing will be 25% to-30%, it said.
The company today forecast full-year operating profit of A$220 million, with “strong sales demand” expected in the final three months of the year.The company also intends to offer shareholders a share purchase plan to subscribe for up to A$15,000 of shares. It gave no further details.
Businesswire.co.nz
No comments yet
Fletcher Building Announces Director Appointment
Meridian issues new demand response exercise notice to NZAS
CRP - Chatham Closes Private Placement of Shares
General Finance - Olympic Term Deposit Promotion featuring a Special Bonus of 0.1%
July 22nd Morning Report
VCT - Operational performance for the year ended 30 June 2024
Challenge to banks the way to go
Bigger returns or lower risk?
NPH - Director Appointment
July 19th Morning Report