Nufarm raises $338M to fund crop portfolio

Nufarm (ASX:NUF) has announced the completion of its institutional entitlement offer, raising approximately $338 million after expecting to raise about $446 million.

Proceeds from the entitlement offer will be used to partially fund the acquisition of a portfolio of crop protection products from Adama and Syngenta for $490 million.

The offer which closed last Wednesday was strongly supported by institutional shareholders who took up over 95 per cent of their entitlements.

This brings Nufarm’s shortfall bookbuild clearing price to $8.50 per new share, representing a $1.00 premium to the offer price of $7.50 per new share and a 0.1 per cent discount per new share.

The agrichemical company expects to raise approximately $108 million with its retail entitlement offer which opens on Wednesday 1 November 2017.

Shares in Nufarm (ASX:NUF) are trading 4.98 per cent higher to $8.93.