Nufarm to raise capital in competitive market
NUFARM is seeking capital of
$303 million through a share issue to strengthen its balance sheet in the wake of a
$15.6 million net after-tax loss for the year ended July
The company is offering three new shares for every 19 held by shareholders at $5.85 a piece, a 11.9 per cent discount to the close on September 24 when an Australian Securities Exchange trading halt was put in place.
Shares fell to 66 cents to
$6.06 yesterday in a belated response to the market announcement.
Nufarm managing director Greg Hunt said volatility around general market conditions as drought hit eastern Australia had made it prudent to raise the capital.
“While we remain confident that working capital and debt will unwind and return to targeted levels, it is appropriate that we take measures to de-risk the balance sheet in the short term,” Mr Hunt said.
“It is also important that Nufarm retains a capacity to continue to grow its business and take advantage of new opportunities that add long-term value.”
Nufarm said it would use $100 million to build a new crop chemical production plant in Mississippi and set up a new manufacturing base in Brazil.
AGRIBUSINESS: Nufarm is seeking to raise $303 million through a share issue.