ADM Buys 14.9% Stake in GrainCorp; To Work Toward Full Acquisition
Date Posted: October 19, 2012
Sydney—Since Thursday evening, Oct. 18, Sydney, Australia time, Archer Daniels Midland Company (NYSE: ADM) has held an economic interest in 14.9 percent of GrainCorp Limited (ASX: GNC) shares.
ADM previously held economic interest in 4.9 percent, and on Thursday evening ADM acquired an additional 10 percent economic interest at a price of A$11.75 per share.
ADM has approached GrainCorp with the aim of arriving at an agreement under which GrainCorp’s Board of Directors would recommend to its shareholders a cash acquisition by ADM. Any agreement would be subject to satisfactory due diligence, regulatory approvals and other conditions.
“Our investment in GrainCorp is part of our ongoing portfolio management and is consistent with our strategy of growing our Agricultural Services and Oilseeds businesses by investing in key supply regions outside the United States,” said ADM Chairman and CEO Patricia Woertz.
“GrainCorp is a well-managed company, and together with ADM would be better positioned to connect Australia’s farmers with growing global demand for crops and food, particularly in Asia and the Middle East.”
“We anticipate that an ADM acquisition of GrainCorp would meet ADM’s key financial hurdles.”
For more information, call 217-424-5413.