19th February 2004
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Announcement
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Nufarm extends limit on SPP to meet strong demand from shareholders
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Nufarm Limited announced today that it will accept applications under its Share Purchase Plan (SPP) totalling approximately $18 million.
The SPP, which closed on Friday February 13, attracted strong demand, with the aggregate value of applications totalling some $22 million. The shares were offered at $5.20 (NZ$5.95), the same price at which shares were allocated in the institutional placement on January 14.
At that time, the company indicated that it reserved the right to scale back SPP applications if they totalled more than $10 million. The Board considered it desirable for the company’s small shareholders to be able to participate fully in the SPP, but was also conscious of its responsibilities to its broader shareholder base. Some scale back was therefore considered appropriate.
Applications relating to offers 1 – 3 (195 shares; 385 shares; and 575 shares) will be accepted in full. Shareholders applying for offers 4 and 5 will be scaled back as follows:
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 | Offer 4 - 770 shares scaled back to 631 shares
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| | Offer 5 - 960 shares scaled back to 787 shares
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Nufarm’s Managing Director, Doug Rathbone, said the additional equity raised under the SPP will strengthen the company's balance sheet by further lowering net debt to equity.
“With total new equity raised under both the SPP and the institutional placement valued at $58 million, the acquisition of the BASF phenoxy herbicides business – announced on January 14 – is forecast to remain earnings per share positive in year 1.”
The final allotment of new shares is expected to be finalised on February 25, with updated holding statements being mailed on March 2.
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Further information:
Robert Reis
Corporate Affairs
Phone (61 3) 9282 1177
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