The board of Japan’s Sumitomo Chemical has approved a plan to acquire a 20% stake in fellow chemical producer Nufarm (ASX:NUF) for $14 per share.
Nufarm shareholders will vote on the tender offer on March 2. Under the proposal, Sumitomo will be entitled to nominate one director to the Nufarm board if the sale is cleared.
Nufarm added that it plans to embark on a $250 million renouncement entitlement offer following the stake sale, and that Sumitomo will be entitled to take place.
NUF shares are currently trading at $10.36.