After falling sharply at the start of Russia's invasion of major grain exporter Ukraine, Vilmorin's shares have yet to regain pre-war levels.
Limagrain said taking Vilmorin private would make it easier to make long-term investment decisions in a highly competitive industry and an uncertain economic climate. The low volume of shares traded, and the fact Vilmorin had not raised capital on the market since 2010, also showed limited value of the listing, Limagrain added. Vilmorin, whose history stretches back to an 18th-century shop in Paris, has been listed in Paris since 1993.
It competes in seeds with likes of Bayer and Syngenta, whose owner Sinochem Holdings Corp wants to list the Swiss-based firm in Shanghai. Vilmorin says it is the world's largest player in vegetable seeds. The share offer, subject to regulatory approval, is expected to run between late June and mid-July, and will be financed by bank debt, said Limagrain, which is based in central France and has activities including bakery goods. Vilmorin shares were suspended from trading on Friday.
Reporting its third-quarter sales on Friday, Vilmorin raised
its target for full-year sales growth, though it said its
activity in Russia remained hampered by logistical difficulties
and sales in Ukraine hurt by a decline in plantings.
($1 = 0.9109 euros)
(Reporting by Gus Trompiz
Editing by Mark Potter)
