UPDATE: GrainCorp Rejects Archer-Daniels' (ADM) Bid of A$12.20/Share
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(Updated - December 13, 2012 9:01 AM EST)
GrainCorp has advised Archer Daniels Midland Company (NYSE: ADM) that its revised indicative, non-binding proposal materially undervalues the company.
On 22 October 2012, GrainCorp announced it had received an indicative, non-binding proposal from ADM to acquire the outstanding shares in GrainCorp at a price of $11.75 per share in cash. On 15 November 2012, the GrainCorp Board announced that it had determined that the proposal materially undervalued GrainCorp.
On 4 December 2012, GrainCorp announced that it had received a revised non-binding, conditional proposal from ADM to acquire the outstanding shares in GrainCorp at a price of $12.20 per share in cash.
This proposal was subject to a number of conditions including due diligence, exclusivity, regulatory approvals and approval by the ADM Board.
The increase in the proposed price has not changed the Board’s view that ADM’s proposal materially undervalues GrainCorp. GrainCorp has advised ADM accordingly.
GrainCorp’s Board will be constructive in any dealings in relation to proposals that have the potential to be in the best interests of shareholders.
GrainCorp has a unique portfolio of integrated, strategic assets and is confident in its outlook and strategy to continue to deliver shareholder value.
GrainCorp has advised Archer Daniels Midland Company (NYSE: ADM) that its revised indicative, non-binding proposal materially undervalues the company.
On 22 October 2012, GrainCorp announced it had received an indicative, non-binding proposal from ADM to acquire the outstanding shares in GrainCorp at a price of $11.75 per share in cash. On 15 November 2012, the GrainCorp Board announced that it had determined that the proposal materially undervalued GrainCorp.
On 4 December 2012, GrainCorp announced that it had received a revised non-binding, conditional proposal from ADM to acquire the outstanding shares in GrainCorp at a price of $12.20 per share in cash.
This proposal was subject to a number of conditions including due diligence, exclusivity, regulatory approvals and approval by the ADM Board.
The increase in the proposed price has not changed the Board’s view that ADM’s proposal materially undervalues GrainCorp. GrainCorp has advised ADM accordingly.
GrainCorp’s Board will be constructive in any dealings in relation to proposals that have the potential to be in the best interests of shareholders.
GrainCorp has a unique portfolio of integrated, strategic assets and is confident in its outlook and strategy to continue to deliver shareholder value.
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