Skip to main content

]]>

Main content Home Compare deals Finance news Managing money Investing Home & property Credit & loans Life stages Tools & guides Small business Home > Finance News > Markets > GrainCorp agrees on takeover offer Print


GrainCorp agrees on takeover offer | Updated: 5:04:16 PM, Monday April 29, 2013

GrainCorp will recommend its shareholders accept the latest takeover offer by US food processing giant Archer Daniels Midland.

GrainCorp on Friday said it had reached conditional agreement with ADM on the takover.

In a statment on its website on Friday, ADM confirmed it had signed a takeover bid implementation deed with GrainCorp and begun due diligence on the Australian company.

‘Subject to the satisfactory completion of this due diligence, ADM has agreed to make a cash offer, which would be unanimously recommended by the GrainCorp board, to acquire the company for $A12.20 per share,’ ADM said.

‘Under the terms of the bid implementation deed, GrainCorp will pay to its shareholders dividends out of current and retained earnings of the business prior to the transaction close.

‘We are pleased to have reached agreement with GrainCorp to conduct due diligence and, subject to that due diligence, put a recommended offer before GrainCorp’s shareholders,’ said ADM chairman and chief executive Patricia Woertz.

‘GrainCorp is a leader in the Australian agribusiness sector. Should the offer proceed, the addition of GrainCorp to our global network would fit our strategy and help to further connect Australia’s growers with growing global demand for crops and food, particularly in Asia and the Middle East.’

The agreement permits ADM to undertake due diligence on GrainCorp for a seven-day period.

Subject to its satisfactory, ADM will announce whether the potential offer will proceed or be terminated.

Should it proceed, ADM will announce the takeover bid to GrainCorp shareholders.

‘GrainCorp has advised that such an offer would be unanimously recommended by the GrainCorp board, subject to there being no superior proposal, an independent expert confirming that the offer is fair and reasonable, and the regulatory conditions for the acquisition being satisfied or waived by December 31, 2013,’ ADM said.

If it does proceed, GrainCorp will pay its shareholders, prior to the transaction’s completion, dividends totalling $A1.00 per share.

‘The potential offer would imply an aggregate transaction value of $A3.4 billion, including GrainCorp’s net debt,’ ADM said.

The transaction value reflects the weighted average cost of acquiring the initial 19.8 per cent stake in GrainCorp at an average of $A11.24 per share and the outstanding shares of GrainCorp at $A12.20 per share.

|

Comments

Leave a comment

Follow this conversation Name: E-mail: Your URL: Comments: Follow any further comments to this article. All comments are moderated. Enter security code:  Security code

Follow this conversation

Leave a comment Your e-mail: You will be emailed when any additional comments are approved by the moderator. You are only subscribing
to comments made to this article. You may unsubscribe via the link provided on notification emails.

Related news


AACo writes down herd value by $43m AACo writes down herd value by $43m

Cattle producer Australian Agricultural Company has written down the value of its herd …

AGL cuts profit forecast AGL cuts profit forecast

AGL Energy has blamed intense competition and weak demand for a reduction in expected …

Aust shares expected to open higher Aust shares expected to open higher

The Australian share market is expected to post strong gains today after strong US jobs …

Aust shares flat amid profit taking Aust shares flat amid profit taking

The Australian sharemarket closed flat amid profit taking in bank stocks and worries …

BC Iron and Cleveland ink Brazil deal $A back below 103 US cents Dollar higher after ECB rate cut Oil prices surge on US jobs report Packer’s proposal ‘not a done deal’ APN says regional papers doing it tough Qantas says local market still tough $A down slightly after two-week high

Compare deals


Get the right credit card credit cards Compare credit cards Get a sweeter savings rate savings rates Compare savings accounts Boost your savings safely term deposit safety Top rate term deposits Go  


Sign up to receive the latest finance news. Email: Subscribe
Connect with us on: Connect with FacebookFacebook Connect with TwitterTwitter Connect with LinkedInLinkedIn Connect with Google PlusGoogle+

BigPond on Facebook

Mozo powered rates widget

Tools & calculators


Currency converter &raquo


Convert: From: To:
Convert Amount: Data supplied by Morningstar, based on a 30min delay.
  BigPond Sport, Movies, Music and Games downloads, video streams and editorial content are unmetered for most BigPond Broadband members. Sitemap | FAQ | Contact Us Terms of Use & Disclaimer – Please read

TelstraBigPond ]]>