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GrainCorp Agrees A$2.8 Billion ADM Takeover

26 April 2013

AUSTRALIA - GrainCorp, eastern Australia's largest crop handler, has agreed to a A$2.8 billion takeover offer from Archer-Daniels-Midland, after initially rejecting the price as too low.

In a statement on its website on Friday, ADM confirmed it had signed a takeover bid implementation deed with GrainCorp and begun due diligence on the Australian company.

If the ADM Offer proceeds, and is successfully completed, shareholders will receive A$13.20 per share, comprising a cash payment of A$12.20 per share under the ADM Offer and dividends totalling A$1.00 per share.

The dividends are expected to be fully franked, providing up to an additional A$0.43 per share for those shareholders who can capture the full benefit from franking on the GrainCorp dividends.

GrainCorp Chairman, Don Taylor, said: “The GrainCorp Board believes that the ADM Offer highlights the strategic value of our business and unique assets, the program of strategic initiatives being undertaken and GrainCorp’s enviable proximity to the fast growing Asian markets.

“GrainCorp will work with ADM to ensure that ADM’s confirmatory due diligence requirements can be satisfied, following which a takeover offer would be made on the terms agreed.

“Assuming this is achieved, the GrainCorp Board of Directors intends to unanimously recommend the ADM Offer subject to there being no superior proposal, an independent expert determining that the ADM Offer is fair and reasonable and the relevant regulatory approvals being satisfied or waived by 31 December 2013.”

TheCropSite News Desk

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