Rob, I understand your point on the high P/E implied by the current share price, but you have to understand that Sinochem was a state owned enterprise in China, and the Chinese aren't viewing the acquisition primarily as a short-term return.
For the Chinese, the acquisition is mainly about providing a guaranteed source of cheap agricultural chemicals for their own internal agricultural growth, and second in order to create a compelling agricultural export business. I calculated that at $14 / share, the earnings yield against enterprise value is about 3.9%, and for EBITDA it would be much higher. Compare that against what the Chinese get on Treasuries and it's similar. But with Nufarm they get growth on the dividend and satisfy some strategic objectives.
I calculated that Sinochem can only afford about a $11.50 offer assuming they were using 10 year paper to finance. But again they are in bed with the Chinese government, and the Chinese have $2T+ USD of reserves, so I'm sure they will get whatever financing they need to make the deal work.
What we cannot predict of course is what Nufarm wants to sell out. If Nufarm wants $20/share, then obviously it's going to fail, unless we get another bidder.
I understand your point that this trade at $11 is $2 up and $2 down, and I don't blame you for being on the sidelines. But given the history with the Chinese on the first bid, I'm expecting a better result in round 2.
- Forums
- ASX - By Stock
- sinochem could offer between a$12 and a$15
NUF
nufarm limited
Add to My Watchlist
0.40%
!
$2.48

Rob, I understand your point on the high P/E implied by the...
Featured News
Add to My Watchlist
What is My Watchlist?
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
|
|||||
Last
$2.48 |
Change
0.010(0.40%) |
Mkt cap ! $953.6M |
Open | High | Low | Value | Volume |
$2.49 | $2.49 | $2.44 | $1.705M | 692.9K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
32 | 28670 | $2.47 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$2.48 | 58059 | 49 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
28 | 23507 | 2.470 |
14 | 32426 | 2.460 |
28 | 114840 | 2.450 |
17 | 116695 | 2.440 |
12 | 59430 | 2.430 |
Price($) | Vol. | No. |
---|---|---|
2.480 | 58139 | 48 |
2.490 | 97593 | 29 |
2.500 | 170824 | 38 |
2.510 | 124145 | 21 |
2.520 | 224742 | 11 |
Last trade - 13.26pm 07/07/2025 (20 minute delay) ? |
Featured News
NUF (ASX) Chart |
The Watchlist
AGC
AUSTRALIAN GOLD AND COPPER LTD
Glen Diemar, MD
Glen Diemar
MD
SPONSORED BY The Market Online