December 2, 2016
ADM announces sale of stake in GrainCorp
Archer Daniels Midland Company (ADM) announced that it has entered into an underwriting agreement to sell its 19.9% ownership stake in GrainCorp Limited for a total value of about AUD387 million (US$287.3 million).
"As part of our ongoing portfolio management, we carefully considered our equity investment position in GrainCorp and determined that we could better meet our long-term returns objectives by reallocating that capital," said ADM Chairman and CEO Juan Luciano. "This transaction will allow us to further reduce our invested capital, and it will provide cash that we can redeploy to higher-return investments as we continue to execute our balanced capital-allocation framework."
The transaction has been executed by way of an underwritten sale to an underwriter. Under the terms of the agreement, ADM will sell all of its 19.9% investment in the issued capital in GrainCorp at a price of AUD8.53 (US$6.33) per share.