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Sumitomo grows Nufarm investment
Arnold Bloch Liebler (ABL) has acted for crop protection company Nufarm Limited in relation to the $600 million strategic investment in Nufarm by Japanese company Sumitomo Chemical Company…
Lawyers Weekly
Arnold Bloch Liebler (ABL) has acted for crop protection company Nufarm Limited in relation to the $600 million strategic investment in Nufarm by Japanese company Sumitomo Chemical Company Limited, represented by Jones Day Lawyers.
Lead partner Jonathan Wenig commented on the success of the investment, stating: "It was gratifying to be able to conclude such a successful transaction for Nufarm and its shareholders, particularly in light of the turbulent share market and trading period that Nufarm has endured. The end result is a stronger company and the foundation of what promises to be a key strategic relationship."
Sumitomo, a publicly listed company, acquired a 20 per cent share of Nufarm' issued capital on 15 April this year following a successful tender offer to Nufarm's shareholders.
According to ABL, Sumitomo's investment essentially creates a strategic relationship between the two companies, and will increase the level of cooperation between them in areas relating to the distribution of products, the development of new products, and sourcing and manufacturing.
The investment in Nufarm by Sumitomo occurred following the rejection by Nufarm's board of an offer by Sinochem Corporation, a Chinese state-owned company, to acquire all of Nufarm's issued capital by way of scheme arrangement.
In addition to the investment, ABL said the equity raising has strengthened Nufarm's balance sheet and places the company in a position to pursue growth opportunities.
