Archer Daniels Midland Company ADM announced that it has sold its 23
percent interest in Gruma, S.A.B. de C.V. (“Gruma”) and its equity investments
in related joint ventures for $450 million plus an additional contingent
payment of up to $60 million.
Under the terms of the sale, ADM received $450 million up front and will also
receive up to $60 million in future contingent payments over the next 42
months. The contingent payments are triggered based upon various conditions,
including: the increase in Gruma's stock market price, over the closing price
of Gruma's stock determined for purposes of the transaction, at the end of the
42 month period; the difference between the price of Gruma's stock fixed for
public offers made by Gruma and the closing price; the acquisition, by any
strategic investor of Gruma, of 15 percent or more of Gruma's capital stock;
or the percentage of Gruma's shares that are considered to be held by the
public at any time.
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