Nufarm was up by more than 20% after confirming the sale of its South American assets, associated with seed treatment and crop protection. The company has sold the assets for A$1.19 billion to Sumitomo Chemical.
The transaction includes assets in Brazil, Chile, Colombia, and Argentina. The sale should allow the Australian farming company to focus on high margin, crop protection market in key markets across Europe and North America. With the sale of the South American crop protection and seed treatment assets, the company intends to buy back shares worth A$97.5 million it sold the Japanese Investor in August.
The sale comes at a time when the company needs to raise some cash to pay down its debt. The sale also comes at a time when a number of Australian companies in the industry are struggling to boost cash flow levels hurt due to harsh weather conditions that has affected farming operations.
The company saw its net profit for the year ending July 31 drop 10% to $89.1 million. Nufarm woes in the industry are further compounded’ by severe flooding in the U.S that has affected its farming operations.
The transaction includes assets in Brazil, Chile, Colombia, and Argentina. The sale should allow the Australian farming company to focus on high margin, crop protection market in key markets across Europe and North America. With the sale of the South American crop protection and seed treatment assets, the company intends to buy back shares worth A$97.5 million it sold the Japanese Investor in August.
The sale comes at a time when the company needs to raise some cash to pay down its debt. The sale also comes at a time when a number of Australian companies in the industry are struggling to boost cash flow levels hurt due to harsh weather conditions that has affected farming operations.
The company saw its net profit for the year ending July 31 drop 10% to $89.1 million. Nufarm woes in the industry are further compounded’ by severe flooding in the U.S that has affected its farming operations.