Syngenta to sell seed business, launches $2b share buy-back

Swiss agrochemicals giant Syngenta on Thursday moved to placate shareholders after it rejected a massive takeover bid by Monsanto, announcing it would sell its vegetable seed business and buy back $2.0 billion worth in shares.

Syngenta, which last week saw its share price plunge 18 percent after US seed giant Monsanto finally dropped its campaign to buy it, said Thursday it would take a series of measures to "accelerate shareholder value creation".

The divestment of its global vegetable seed division was part of this plan, it said, pointing out that the business had "a significant global footprint and a wide array of best-in-class varieties," adding that it was "expected to attract significant third-party interest."

The unit raked in $663 million in sales last year.

Syngenta said it also aimed to return "significant levels of capital" to its shareholders through a programme to buy back more than $2.0 billion in shares, set to begin in coming weeks.

"The board and management are determined to accelerate shareholder value creation and our actions today underpin our commitment to do so," chairman Michel Demare said in a statement.

Last week, Syngenta saw its share price plummet after Monsato dropped its campaign to buy the company, maintaining it had no choice but to pull the plug on the proposed deal after Syngenta refused to entertain repeated and improved offers.