Archer Daniels Midland Sells Gruma Interests for $450M Plus Added Contingent Payment of Up to $60M
Archer Daniels Midland Company (NYSE: 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.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.