Israeli crop protection firm Adama Q4 loss widens on IPO expense

Israel-based Adama Agricultural Solutions reported a steeper quarterly loss due to a one-time expense related to the preparation of an initial public offering in New York.

Adama, the world”s largest provider of generic crop protection products, said on Sunday it lost $32.6 million in the fourth quarter, compared with a $29.1 million loss a year earlier when it also had a tax benefit.

China National Chemical Corp (ChemChina) owns 60 percent of Adama, while Israel”s Discount Investment Corp owns the rest.

Adama in October had filed with U.S. regulators to raise up to $400 million in an IPO on the New York Stock Exchange but a month later postponed the offering because of adverse market conditions.

The offering was meant to help finance a planned acquisition of a group of Chinese companies aimed at bolstering its market position in China.

“The company and its shareholders are examining various possibilities regarding the execution of the business combination between the company and the China business,” Adama said.

It added that it was also considering its options regarding a future floatation depending on market conditions.

Adama”s revenue grew 2.8 percent to $674 million in the October-December period, led by gains in North and Latin America and in Europe. Sales to Asia-Pacific, Africa and Israel declined. In constant currency terms, quarter revenue grew 6 percent.

Reuters,  23/06/2015