GrainCorp buys stake in Egyptian flour miller
July 10, 2014
by World Grain Staff
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SYDNEY, AUSTRALIA — GrainCorp announced on July 10 in a news release posted to the Australian Stock Exchange that it has purchased a 10% equity stake in Egyptian flour miller Five Star Flour Mills.
The stake has a value of A$10 million and will be funded from existing cash reserves, GrainCorp said. The stake gives GrainCorp a right to appoint a director to Five Star’s board.
Don Taylor, GrainCorp’s executive chairman and interim chief executive officer, said there is a strong strategic rationale for building its relationship with Five Star.
“We have been working in close partnership with the management team at Five Star Flour Mills for a number of years, and have been in discussions for some time about how we can strengthen our relationship for the benefit of both our companies and the growers who use our network,” Taylor said.
Five Star is one of Egypt’s leading flour millers with 30 specialized and ready mixed products. It owns a dedicated port at Adabiya port in Suez with a grain unloader capable of processing 600 tph from Panamax size vessels and grain silos with storage capacity of 125,000 tonnes.