Adama Agricultural Solutions reported further progress toward its combination with Sanonda.
The transaction is expected to be completed in the first half of this year, and is subject to regulatory approvals.
On Monday, January 9, 2017, Sanonda reported that its Board of Directors set January 25, 2017 as the date of the general shareholders meeting for the approval of the transaction.
In addition, Sanonda's Board of Directors approved the transaction report for the company's combination with Adama, with no material changes to the draft released in September 2016.
Adama's combination with Sanonda is expected to create the only integrated Global-China crop protection company, which at its outset will be the largest crop protection company in China, as well as the first global one to be publicly traded on the Chinese stock market.
The transaction will be accomplished through the issuance by Sanonda of new shares to Adama's shareholder CNAC, in exchange for all the shares in Adama. The combined company's shares will be listed on the Shenzhen Stock Exchange, providing access to RMB- and Hong Kong Dollar-denominated capital. Upon completion of the transaction, the combined company will be owned approximately 75% by CNAC, with the remaining 25% owned by institutional and retail investors.
Adama Agricultural Solutions Ltd. has sales of $3.1 billion in the twelve months ending September 30, 2016. Adama's products are sold in 100 countries, including solutions to control weeds, insects and disease, and improve yields.