SYDNEY, AUSTRALIA — GrainCorp said on Oct. 19 that it received a proposal from Archer Daniels Midland (ADM) to purchase the company’s outstanding shares.
ADM said it is prepared to make an offer to acquire the shares at a price of A$11.75 per share in cash, subject to a number of conditions, including due diligence, exclusivity and approval by the ADM board.
GrainCorp was advised by ADM that it has acquired a 14.9% economic interest through equity derivative contracts.
The GrainCorp board is reviewing the proposal and has not yet formed a view on its merits and will keep the market informed of any material developments. Shares of GrainCorp. Ltd. trade on the Australia Stock Exchange. Based in Sydney, the company has a market capitalization of $1.8 billion.
GrainCorp has a unique portfolio of integrated, strategic assets and is confident in its outlook and strategy to continue to deliver shareholder value. GrainCorp will provide a detailed update on the performance and outlook of the business at its upcoming results announcement.
GrainCorp has appointed Credit Suisse and Greenhill as financial advisers and Gilbert+Tobin as legal advisers.
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