AgroPages-Sumitomo Chemical launches open offer for Excel Crop shares-Agricultural news

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Sumitomo Chemical Co., Ltd has launched an open offer to acquire an additional 30% in Indian agrochemicals company Excel Crop Care Ltd, entailing an investment of Rs.415.80 crore.

Last Sunday, Sumitomo Chemical had agreed with the founding family and financial investors of Excel Crop to acquire their 44.98% stake in Excel Crop for around Rs.623.44 crore, as a part of Sumitomo Chemical Group’s efforts to enhance their presence in India.

Sumitomo Chemical had set up its manufacturing and marketing base in India in 2000 and had acquired a local manufacturing company in 2010.

This acquisition triggers an open offer under which Sumitomo Chemical Group is expected to acquire additional public shares that will result in the Japanese Group acquiring a maximum of 75% of the shares of Excel Crop Care.

ICICI Securities Ltd is managing the open offer for Sumitomo Chemical to acquire shares over 33 lakh from public shareholders, constituting 30% stake, at Rs.1,259.36 apiece, amounting to Rs.415.80 crore.

The agrochemical market in India has grown steadily and substantially, averaging 6.4% per annum over the past five years, and is currently ranked the 9th in size in the world market as India is expected to keep expanding at a high rate to meet a brisk demand for increased food production.

“The share acquisition of Excel Crop Care, which is the 5th largest in revenue among agrochemicals companies in India, is another strong step forward in further promoting expanding and enhancing Sumitomo Chemical’s agrochemicals business in India. In addition, Sumitomo Chemical’s enhanced access to Excel Crop Care’s robust product portfolio and distribution channels will be conducive to Sumitomo Chemical reinforcing its agrochemical business operation in areas outside India,” Sumitomo Chemical said in a statement on Monday.