Adama Agricultural Solutions Ltd. (formerly Makhteshim-Again), which produces pesticides and insecticides, is planning to submit a draft prospectus for having its shares listed for trading on the New York Stock Exchange (NYSE) or Nasdaq, according to the company's second quarter financial statements published today. The shareholders in Adama are ChemChina (60%) and Discount Investment Corporation (TASE: DISI) (40%).
Last Thursday, the company board of directors approved the submission to US Securities and Exchange Commission (SEC) a draft document for the registration of its shares for trading, including a prospectus. It is believed that the company plans to offer shares at a market value of $3.5 billion, after money, net of an estimated net debt of $1.2 billion. Underwriter Goldman Sachs is expected to lead the offering, together with other foreign investment banks.
The company also reported that it was still looking at business opportunities in China "that will contribute to the company's presence in the Chinese market, bolster its presence in the Asian Pacific region, and expand its global capabilities." According to the company's announcement, it is pushing negotiation with its Chinese controlling shareholder for the purchase of all or part of its shares, or the assets of a number of companies directly or indirectly controlled by ChemChina.
Adama's net profit totaled $59 million in the second quarter, up 23.5%, compared with the corresponding quarter last year. The company's net profit in the first half of 2014 was up 14% to $158 million.
Managed by CEO Chen Lichtenstein, Adama also improved in other parameters. Sales totaled $876 million, 9% more than in the corresponding quarter last year, as a result of higher quantitative sales in most of the regions in which the company does business. Sales in Latin America rose by a particularly steep 21%. The company said its revenue had risen by an annual average of 12% over the past 20 years, three times the growth rate in its sector.
Published by Globes [online], Israel business news - www.globes-online.com - on August 10, 2014
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