Nufarm (ASX:NUF) Chair John Gillam is facing mounting pressure to sell the company due to a plunging stock price following a weak fiscal first-half profit, The Australian reported Tuesday.
The stock price has dropped 42% from AU$4.02 early this month to AU$2.38 a share on Monday.
Simon Mawhinney, from South African investment management firm Allan Gray, wants the board to test market interest in a takeover, preferring it over seeking more external equity to maintain seed technology expansion, according to The Australian.
Mawhinney, who holds around 17% of the company, will meet with the Nufarm board on Wednesday.
Gillam and Nufarm CEO Greg Hunt are aiming to meet shareholder demands but may resist a perceived "fire sale," with company insiders arguing it's rare for businesses to achieve full value with a fire sale.
Mawhinney, along with Raphael Lamm from L1 Capital and Vidhur Rangaswamy from Tanarra, control 30% of the company's stock.
Nufarm did not immediately respond to a request for comment by MT Newswires.
Shares rose nearly 3% in morning trade on Wednesday.
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