Friday, December 7, 2012

ADM revises proposal to acquire GrainCorp for A$12.20 per share


    Archer Daniels Midland Company has delivered to GrainCorp Limited a revised non-binding proposal, with the aim of arriving at an agreement with GrainCorp’s board of directors under which they would recommend to GrainCorp shareholders an acquisition by ADM of all of GrainCorp for A$12.20 a share in cash, according to reports.
    ADM’s proposed price represents a material increase of A$0.80 from the initial proposal of A$11.75 made on October 19, after allowing for recent dividends totaling A$0.35. “We consider that our revised non-binding proposal reflects the value of GrainCorp’s business, taking into account GrainCorp’s 2012 results, its new initiatives announced on November 15 and its recently announced ordinary and special dividends totaling A$0.35," said ADM Chairman and CEO Patricia Woertz. "Our proposal also offers more certainty, greater value and immediate realization of potential future value for GrainCorp shareholders than GrainCorp’s stand-alone plan. ADM is a disciplined buyer, and any combination with GrainCorp must meet our key financial hurdles, taking into consideration the impact of the Australian agricultural cycle on GrainCorp’s earnings power.”
    The revised non-binding proposal represents:
    • a 39.6 percent premium to the last closing price of GrainCorp shares of A$8.74 on October 18
    • a 38.8 percent premium to the one-month, volume-weighted average GrainCorp share price of A$8.79 up to October 18
    • a 35.7 percent premium to the six-month, volume-weighted average GrainCorp share price of A$8.99 up to October 18
    • a 45.9 percent premium to the twelve-month, volume-weighted average GrainCorp share price of A$8.36 up to October 18

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