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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