Archer Daniels Midland Company announced that it has sold its
23 percent interest in Gruma S.A.B. de C.V. and its
equity investments in related joint ventures for $450 million plus an additional
contingent payment of up to $60 million.
According to ADM, the sale is
part of the company's ongoing portfolio management actions to redeploy capital
into key strategic areas that will help drive higher returns in the future.
Under the terms of the sale, ADM received $450 million up front and will
also receive up to $60 million in future contingent payments over the next 42
months. The contingent payments are triggered based upon various conditions,
including the increase in Gruma’s stock market price, over the closing price of
Gruma’s stock determined for purposes of the transaction, at the end of the 42
month period; the difference between the price of Gruma’s stock fixed for public
offers made by Gruma and the closing price; the acquisition, by any strategic
investor of Gruma, of 15 percent or more of Gruma’s capital stock; or the
percentage of Gruma’s shares that are considered to be held by the public at any
time.
While ADM has exited from its ownership position in Gruma and related
investments, ADM said it expects to maintain a healthy and strong commercial
relationship with Gruma globally. Bank of America Merrill Lynch was the
financial adviser to ADM in the transaction.
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