Nu­farm to raise cap­i­tal in com­pet­i­tive mar­ket

Warwick Daily News - South West Queensland Rural Weekly - - News -

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

31, 2018.

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.

PHOTO: YURI KOUZMIN

AGRIBUSINESS: Nu­farm is seek­ing to raise $303 mil­lion through a share is­sue.

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