AUS: ADM moves for talks on GrainCorp buyout
Agricultural giant Archer Daniels Midland has taken a 10% stake in Australian grain trader GrainCorp and approached the company to open "discussions over a potential transaction".
In a letter to the Australian Securities Exchange today (19 October), GrainCorp requested a halt to trading in its shares under Listing Rule 17.1. The company asked that the trading halt should last until next Tuesday.
In the letter, company secretary Andrew Horne said GrainCorp has "received no formal proposal".
"Should GrainCorp receive a proposal from ADM, the board will review the proposal as well as other options to maximise value for GrainCorp shareholders," Horne said.
Located in Sydney, the Australian firm has two trading offices in China: Beijing and Singapore. Reports have liked ADM's interest in GrainCorp to its ambition to expand in Asia. ADM was unavailable for comment at time of press.
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