ADM Makes Revised Proposal to Acquire GrainCorp Limited for A$12.20 a Share

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Archer Daniels Midland Company
ADM
has delivered to GrainCorp Limited
GNC
a revised non-binding proposal, with the aim of arriving at an agreement with GrainCorp's Board of Directors under which they would recommend to GrainCorp shareholders an acquisition by ADM of all of GrainCorp for A$12.20 a share in cash, with shareholders keeping the dividend of A$0.35 announced on Nov. 15. ADM's revised non-binding proposal is subject to GrainCorp granting ADM access to conduct confirmatory due diligence, completion of that due diligence satisfactory to the ADM Board, and a recommendation from the GrainCorp Board. ADM is ready to commence due diligence immediately and expeditiously. Any agreement to acquire GrainCorp shares would also be subject to limited conditions which are available at on the company website www.adm.com. “We consider that our revised non-binding proposal reflects the value of GrainCorp's business, taking into account GrainCorp's 2012 results, its new initiatives announced on Nov. 15, and its recently announced ordinary and special dividends totaling A$0.35. Our proposal also offers more certainty, greater value and immediate realization of potential future value for GrainCorp shareholders than GrainCorp's stand-alone plan,” said ADM Chairman and CEO Patricia Woertz. “ADM is a disciplined buyer, and any combination with GrainCorp must meet our key financial hurdles, taking into consideration the impact of the Australian agricultural cycle on GrainCorp's earnings power.”
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Posted In: NewsM&A
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