Sumitomo Chemical increases its stake in Nufarm

Sumitomo Chemical announced today that it has increased its shareholding in Nufarm to 21.7% and that it plans to acquire up to an additional 1.3% of Nufarm\'s issued capital by exercising the right to purchase additional shares under Section 611 (9)

Sumitomo Chemical announced today that it has increased its shareholding in Nufarm to 21.7% and that it plans to acquire up to an additional 1.3% of Nufarm's issued capital by exercising the right to purchase additional shares under Section 611 (9) of the Australian Corporations Act.

Sumitomo completed a strategic investment in Nufarm in April 2010, acquiring 20% of ordinary shares via a tender offer. Sumitomo?s strategic relationship with Nufarm is progressing smoothly in such fields as distribution, development, manufacturing (formulation) and procurement and logistics, and synergies from the collaboration have already started to materialize.
In order to strengthen the relationship with Nufarm and to help expedite additional areas of collaboration, Sumitomo has decided to increase its stake in Nufarm.

Sumitomo has negotiated the purchase of 4,500,000 Nufarm shares directly from Mr. Doug Rathbone, Managing Director of Nufarm. An agreement to purchase those shares was executed after the close of trading on the Australian Stock Exchange yesterday, at a price of A$5.28 per share, which represents the three month volume weighted average price of Nufarm shares between February 1 and April 29, 2011.

Sumitomo plans to purchase additional shares from the market within the next 6 months so that Sumitomo?s shareholding in Nufarm will reach approximately 23%.
Through the collaboration with Nufarm, Sumitomo will improve efficiency in its operations and strengthen its global crop protection businesses. The decision to increase Sumitomo's ownership stake in Nufarm is a clear indication of Sumitomo's confidence in Nufarm's business and the strong growth prospects that exist for both Nufarm and Sumitomo.