Adama studies merger with Chinese crop protection manufacturer Sanonda

Adama Agricultural Solutions, Ltd., a leading off-patent crop protection solutions company, said Wednesday its shareholders are exploring a potential merger with Hubei Sanonda, Ltd., a leading Chinese crop protection manufacturer traded on the Shenzhen Stock Exchange.

If  the merger is implemented, it would allow the combined company to achieve full integration as well as public listing.

The potential transaction could be accomplished through the issuance of new shares by Sanonda to the existing owners of Adama - CNAC, ChemChina's strategic business division and controlling shareholder of Adama, and Koor of Israel's IDB Group - in exchange for their ownership stakes in Adama.

As a result, Adama is expected to be able to achieve integration with Chinese agrochemical businesses that are part of the ChemChina group and flotation on one of the world's largest stock exchanges. The combination will allow Adama to accelerate its China integration, which it has been pursuing in recent years.

The process of negotiating and approving the contemplated transaction is expected to take several months during which all relevant aspects of the transaction are to be considered. There is still uncertainty as to whether the negotiations will result in binding agreements, the exact structure and terms of such agreements and their implications for the company.

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Adama Agricultural Solutions Ltd

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