Arab Today, arab today syngenta to sell seed business launches 2bn share buyback
Last Updated : GMT 02:26:33
Arab Today, arab today
Arab Today, arab today

Syngenta to sell seed business, launches $2bn share buy-back

Arab Today, arab today

Arab Today, arab today Syngenta to sell seed business, launches $2bn share buy-back

Syngenta
Geneva - AFP

Swiss agrochemicals giant Syngenta on Thursday moved to placate shareholders after it rejected a massive takeover bid by Monsanto, announcing it would sell its vegetable seed business and buy back $2.0 billion worth in shares.

Syngenta, which last week saw its share price plunge 18 percent after US seed giant Monsanto finally dropped its campaign to buy it, said Thursday it would take a series of measures to "accelerate shareholder value creation".

The divestment of its global vegetable seed division was part of this plan, it said, pointing out that the business had "a significant global footprint and a wide array of best-in-class varieties," adding that it was "expected to attract significant third-party interest."

The unit raked in $663 million in sales last year.

Syngenta said it also aimed to return "significant levels of capital" to its shareholders through a programme to buy back more than $2.0 billion in shares, set to begin in coming weeks.

"The board and management are determined to accelerate shareholder value creation and our actions today underpin our commitment to do so," chairman Michel Demare said in a statement.

Last week, Syngenta saw its share price plummet after Monsato dropped its campaign to buy the company, maintaining it had no choice but to pull the plug on the proposed deal after Syngenta refused to entertain repeated and improved offers.

The last bid, proposed on August 18, worth about $46 billion at the time, would have amounted to 470 Swiss francs per share overall, up from the original April bid of 449 francs per share, Monsanto said.

"Syngenta management reacted well to appease shareholders after the failed takeover by Monsanto," IG analyst Andreas Ruhlmann said in a note.

He pointed out that Monsanto had planned to sell off the vegetable seed division, which accounts for 21 percent of Syngenta's business, if the takeover deal had gone through.

And, he stressed, although the seed business had been undergoing difficulties for the past two years, "the potential for margin expansion should not fail to attract buyers."

"This move makes sense, as it will allow Syngenta to concentrate on its high margin crop business where it enjoys a world leading position," he said.

Many analysts downgraded Syngenta after the Monsanto deal fell through, but Ruhlmann said Thursday's announcement "leaves a lot of room for any upside surprise."

"And if Syngenta successfully sells its seed branch, there are chances Monsanto will come back with yet another offer," he added.

Following Thursday's announcement, Syngenta saw its share price rise 3.36 percent in midday trading to 337.90 Swiss francs a piece, as the Swiss stock market's main SMI index rose 1.63 percent.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today syngenta to sell seed business launches 2bn share buyback Arab Today, arab today syngenta to sell seed business launches 2bn share buyback

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today syngenta to sell seed business launches 2bn share buyback Arab Today, arab today syngenta to sell seed business launches 2bn share buyback

 



Arab Today, arab today Designer Rania Adel reveals her new collection

GMT 17:59 2017 Monday ,12 June

Designer Rania Adel reveals her new collection
Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Mai Al-Jeddawi presents décor ideas for Ramadan
View News in Arabic - Business: أخبار الشركات
Arab Today, arab today
Arab Today, arab today

GMT 09:49 2017 Tuesday ,02 May

Girl barred from Malaysia chess competition

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse

GMT 16:25 2017 Sunday ,04 June

“Suhoor” is basic meal for fasting

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 23:13 2017 Sunday ,18 June

New ransomware virus attacking mobiles in Oman
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday