Syngenta, an agricultural chemicals player owned by ChemChina, says that its crop protection unit together with its subsidiary biologicals company Valagro (Atessa, Italy) have submitted an expression of interest and nonbinding offer regarding the intention to promote a public tender offer for all the shares of the Sicit Group (Arzignano, Italy) for a target price of €17.30/share ($20.80/share) that will not be reduced by the expected dividend of €0.55/share. The nonbinding offer is subject to limited confirmatory due diligence and approval by the board of Syngenta, the company says.
Sicit Group says that the nonbinding offer it received includes an industrial partnership proposal, addressed to all Sicit Group’s stakeholders and in particular to Intesa Holding, which is currently the controlling shareholder of the company with a stake of 43.44%. Syngenta has expressed the desire for Intesa Holding to remain a long-term shareholder of Sicit Group and in case it decides to do so Syngenta would be ready to offer Intesa Holding a shareholders' agreement to share the governance, the company says.
Syngenta says that it sees “the relationship with Intesa Holding as key to the success of the proposed transaction and the potential future achievements of Sicit Group.” The company adds that a combination between Syngenta, Valagro, and Sicit Group can offer enormous potential “to shareholders, clients, employees, and stakeholders such as the tanneries in the Arzignano district in terms of value creation, return, and stability regarding the continuation of the collection service arrangements in the district.”
In October 2020, Syngenta’s crop protection unit acquired Valagro, but the company continues to operate as an independent brand in the market within Syngenta’s crop protection business.
For more information:
Syngenta
www.syngenta.com