AUS: ADM offers A$2.76bn for GrainCorp

By Katy Askew | 22 October 2012

Archer Daniels Midland Company has tabled an offer to acquire GrainCorp that values the Australian agricultural group at A$2.76bn (US$2.85bn).

In a statement released to the Australian Securities Exchange today (22 October), GrainCorp revealed that ADM has offered $11.75 per share for the group. This represents a 33% premium on the company's closing price on Friday, when the approach was announced and GrainCorp requested a trading halt on its shares.

ADM also confirmed that it increased the stake that it already holds in GrainCorp last week to 14.9%, up from almost 5%. ADM has indicated that the move is part of its international push to expand its agricultural business.

GrainCorp said that its board is currently reviewing the proposal. The company has appointed Credit Suisse and Greenhill as financial advisors but the board emphasised that it has not yet "formed a view" on ADM's proposal.

"GrainCorp has a unique portfolio of integrated, strategic assets and is confident in its outlook and strategy to continue to deliver shareholder value," GrainCorp emphasised. 

Sectors: Commodities & ingredients, Mergers & acquisitions

Companies: ADM

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