Feb 3, 2016Syngenta Board recommends ChemChina’s $43B offer to shareholders
The Syngenta Board of Directors announced it finds ChemChina‘s $43 billion offer to buy Syngenta as respecting the interests of all stakeholders and is unanimously recommending the offer to shareholders, according to a news release.
ChemChina has offered to acquire the company at $465 per share in cash, plus a special dividend of CHF 5 to be paid conditional upon and prior to closing, according to the news release. The offer is equivalent to a Swiss franc value of CHF 480 per share. Syngenta shareholders will in addition receive the proposed ordinary dividend of CHF 11 in May 2016. It is planned to make a facility available for the conversion of US dollar sales proceeds into Swiss francs on closing.
Syngenta’s existing management will continue to run the company. After closing, a ten member Board of Directors will be chaired by Ren Jianxin, chairman of ChemChina, and will include four of the existing Syngenta Board members. Syngenta will continue to be headquartered in Switzerland, according to Michael Demaré, chairman of Syngenta.
Ren Jianxin, chairman of ChemChina, said: The discussions between our two companies have been friendly, constructive and co-operative, and we are delighted that this collaboration has led to the agreement announced today. We will continue to work alongside the management and employees of Syngenta to maintain the company’s leading competitive edge in the global agricultural technology field.”
Dyalco, J.P. Morgan, Goldman Sachs and UBS served as financial advisors to Syngenta on the transaction. Bär & Karrer and Davis Polk served as legal advisors.
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