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Nufarm Limited's Chief Executive Officer and associated entities sell 4.5 million Nufarm shares to Sumitomo Chemical Company
Laverton North, Victoria, Australia
May 10, 2011
Nufarm Limited's Chief Executive Officer, Doug Rathbone, has informed the company that he and associated entities have sold 4.5 million Nufarm shares to Sumitomo Chemical Company (Sumitomo) in an on-market transfer executed before the opening of trading on the Australian Stock Exchange today.
Mr Rathbone said he elected to sell the parcel of shares after Sumitomo indicated its intention to increase its ownership stake in Nufarm from 20% to 23% by taking advantage of the 'creep' provisions under the Corporations Act. Mr Rathbone’s share sale is consistent with the statement he made in March 2010 that he intends to retain a long-term holding in Nufarm of approximately 10 million shares.
"The opportunity to sell this parcel of shares to Sumitomo avoids any market disruption that might result from the on-market sale of Nufarm shares owned by me," said Mr Rathbone. "I am also pleased to see that Sumitomo intends to increase its strategic stake in Nufarm and continue to explore areas where the two companies can co-operate and build value for both businesses."
Sumitomo has announced that it intends to acquire additional shares on-market within the next six months so that its total shareholding in Nufarm is approximately 23%.
Mr Rathbone said he will use the proceeds of the sale to meet a personal tax liability that falls due this year. He said he has no current plans to sell down his remaining stake in Nufarm which stands at 11,669,890 shares following the sale to Sumitomo. The transaction between Mr Rathbone and Sumitomo was concluded at a price of $5.28 per share, which represents the three month volume weighted average price of Nufarm shares to the end of April.
Under the terms of the agreement between Nufarm and Sumitomo, Sumitomo cannot increase its shareholding in Nufarm beyond 23% without receiving approval from the Nufarm Board. Alternatively, Sumitomo can make an offer to all shareholders to acquire the company.
More news from:
. Nufarm Ltd.
. Sumitomo Chemical Co.
Website: http://www.nufarm.com Published: May 11, 2011 |
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