October 22, 2012
On Friday (Oct.19) afternoon GrainCorp received an indicative, non-binding proposal from ADM stating its offer to acquire outstanding shares in GrainCorp at US$11.75 per share in cash.
ADM's offer to GrainCorp is subject to a number of conditions including due diligence, exclusivity and approval by the ADM board.
Since Thursday (Oct.18) evening Sydney time, Archer Daniels Midland Company (ADM) has held an economic interest in 14.9% of GrainCorp Limited (GNC) shares. ADM previously held economic interest in 4.9%, and on Thursday (Oct.18) evening ADM acquired an additional 10% economic interest at a price of AUD11.75 (US$12) per share.
ADM has approached GrainCorp with the aim of arriving at an agreement under which GrainCorp's Board of Directors would recommend to its shareholders cash acquisition by ADM. Any agreement would be subject to satisfactory due diligence, regulatory approvals and other conditions.
"Our investment in GrainCorp is part of our on-going portfolio management and is consistent with our strategy of growing our Agricultural Services and Oilseeds businesses by investing in key supply regions outside the US," said ADM Chairman and CEO Patricia Woertz.
"GrainCorp is a well-managed company, and together with ADM would be better positioned to connect Australia's farmers with growing global demand for crops and food, particularly in Asia and the Middle East. We anticipate that an ADM acquisition of GrainCorp would meet ADM's key financial hurdles."
GrainCorp has a unique portfolio of integrated, strategic assets and is confident in its outlook and strategy to continue to deliver shareholder value. GrainCorp will provide a detailed update on the performance and outlook of the business at its upcoming results announcement.
