Syngenta $1bn buyback plan
NOVARTIS and AstraZeneca have earmarked $1 billion to buy back 10% of Syngenta, the agrochemicals company they are forming, reports the Financial Times.
This 10-day buy back operation is intended to stabilise share price in early days of trading for the large stand-alone agrochemicals group.
According to documents sent to AstraZeneca shareholders, a value of $10bn – $89 per share – had been placed on the company.
Proforma figures showed that Syngenta increased earnings before interest tax and depreciation by 13% to $1.26bn.
It raised its margin from 24.7% in the first half of 2000 on a 3% increase in sales to $4.65bn.
Syngenta chief executive Michael Pragnell said agriculture was going through a slump and that there was little prospect of things being better in 2001.
But he believed Syngenta should produce strong earning by reducing costs $525m by 2004 and increasing margins.
A significant amount of Syngentas $785m research and development budget will be spent on genetically modified seeds.
- Brussels clears agrochem merger, FWi, 27 July, 2000
- Novartis and AstraZeneca to merge, FWi, 02 December, 1999
- Financial Times 19/09/2000 page 34
- The Independent 19/09/2000 page 18
- The Times 19/09/2000 page 24