US agribusiness Archer Daniels Midland has sold its stake in Gruma back to the Mexican group.
Gruma has acquired the 23.2% stake held by ADM, as well as a number of smaller holdings in various subsidiaries.
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In an announcement on Friday (14 December), Gruma said it had paid US$450m for the stock package. The company could make an additional payment to ADM of up to $60m, depending on stock performance and other variables.
The deal was funded through around $400m in bridge loans, which Gruma will need to refinance over the next year. In order to qualify for these loans, Gruma widened its leverage covenants on existing bank debt.
However, the company was confident that the deal will add value to its stakeholders. The company insisted that the price – even including the contingency payment – would generate value considering additional net income attributable to stockholders.
ADM, meanwhile, is considering whether to table another takeover bid for Australian agribusiness GrainCorp after having two offers rejected.
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