Milling & Baking News - December 25, 2012 - 30

International 

Australia’s GrainCorp rejects second offer from ADM
SYDNEY, AUSTRALIA — GrainCorp Ltd. has rejected a second offer from Decatur, Ill.-based Archer Daniels Midland Co. to acquire GrainCorp’s outstanding shares for A$12.20 per share ($12.88) in cash, claiming the proposal again “materially undervalues” the company. GrainCorp said it received the revised non-binding, conditional proposal from ADM on Dec. 4. Earlier, GrainCorp’s board rejected ADM’s bid of A$11.75 per share, which initially was submitted on Oct. 22. “The increase in the proposed price has not changed the board’s view that ADM’s proposal materially undervalues GrainCorp,” GrainCorp said. “GrainCorp has advised ADM accordingly.” The Sydney-based company added its board will be constructive in any dealings in relation to proposals that have the potential to be in the best interests of GrainCorp shareholders. “GrainCorp has a unique portfolio of integrated, strategic assets and is confident in its outlook and strategy to continue to deliver shareholder value,” the company said. In response to having its second offer rejected, Jackie Anderson, spokesperson for ADM, said, “On Dec. 3, we approached GrainCorp’s board of directors with a revised proposal of A$12.20 a share in cash. That proposal represented a material increase over our initial proposal of A$11.75 a share. Also, when combined with the dividend of A$0.35 per share announced on Nov. 15, our revised proposal represented a total value to GrainCorp shareholders of A$12.55 a share. “The revised proposal represented a substantial premium to the

prevailing GrainCorp share price at the time of our first approach. We believe that our revised proposal properly values GrainCorp’s business, taking into account GrainCorp’s 2012 results and its new initiatives announced on Nov. 15. Our proposal offered more certainty, greater value and immediate realization of potential future value for GrainCorp shareholders than GrainCorp’s stand-alone plan. “We intend to consider all our options with respect to GrainCorp and our 19.9% shareholding.” As of Dec. 3, ADM held an economic interest in a total of 19.9% of GrainCorp shares. Since Oct. 18, ADM had held an economic interest in 14.9% of GrainCorp, and on Dec. 3 ADM acquired an additional 5% of GrainCorp’s outstanding shares for cash at a price of A$12.20 per share. ADM received approval from the Australian Foreign Investment Review Board to acquire up to 19.9% of the shares in GrainCorp. MBN our scientists around the world will help redefine existing products, open new market segments, and increase our rate of innovation.” In addition to Russia, DuPont also recently opened innovation centers in Japan, Korea, Taiwan, Thailand, India, Brazil, Mexico and the United States. Future plants are planned for Switzerland and Turkey in early 2013. MBN

DuPont opens innovation center in Russia
MOSCOW — E.I. du Pont de Nemours & Co. has opened its first innovation center in Russia. The center, DuPont’s ninth globally, also is the company’s first in the Europe, Middle East and Africa region. DuPont said the facility will focus on science-powered innovation related to food, construction, oil and gas, rail and automotive industries. “The pace of research and development in emerging markets is rapidly accelerating,” said Douglas Muzyka, senior vice-president and chief science and technology officer. “Connecting our customers in Russia to

Aryzta North American sales rise 12%
ZURICH, SWITZERLAND — Revenue within the Food North America division at Aryzta A.G. in the first quarter ended Oct. 31 rose 12% to €367.5 million ($479.2 million), up from €327.1 million in the same period a year ago. Aryzta said favorable currency movements contributed 9.8 percentage points of the growth, while a small bolt-on acquisition added 1.2 points. The acquisition is expected to accelerate Aryzta’s transition to fewer larger multi-product facilities in North America, the company said. “The focus in North America is also on leveraging the Aryzta North America transformation to deliver further growth, as a result of the aligned business,” the company said. Total Food Group sales rose 8% during the quarter to €747.5 million ($974.8 million), while Total Group sales climbed 9% to €1,098.7 million ($1,432.8 million). “Our performance during the period was satisfactory, given that the global trading environment remains very challenging and has not improved since our year-end results announcement in September,” said Owen Killian, chief executive officer. “As previously highlighted, FY 2013 will be another year of substantial transformation and reorganization for Aryzta.” MBN
30 / December 25, 2012 Milling & Baking News

Cargill to buy edible oil brand in India
GURAGAON, INDIA — Cargill has signed an agreement with Wipro Ltd. to acquire the latter’s flagship brand Sunflower Vanaspati. The move is expected to strengthen Cargill’s existing portfolio of edible oil and vanaspati brands, and also to expand its market reach in India’s palm oil and derivatives market. Vanaspati is a hard fat. Currently, Cargill produces and markets vanaspati locally under such brands as Rath, NatureFresh Purita, and Gemini. The company’s edible oil portfolio includes such brands as Nature Fresh, Sweekar and Gemini. “Acquiring Sunflower Vanaspati underscores Cargill’s long-term commitment to growing our consumer food business in India,” said Siraj Chaudhry, chairman of Cargill India. “It is an excellent fit with our existing strong brand portfolio through which we serve a significant consumer base across the country. “Sunflower Vanaspati is an iconic and trusted name associated with cooking delicious food, purity and goodness since 1949. We will build on its strong brand heritage, and consumers will benefit from Cargill’s commitment to quality, food safety, innovation and value.” MBN

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Milling & Baking News - December 25, 2012

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