World Grain - January 2013 - 16

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GrainCorp rejects second offer from ADM

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SYDNEY, AUSTRALIA — GrainCorp Ltd. in December
rejected a second offer from Decatur, Illinois, U.S.-based
Archer Daniels Midland Co. (ADM) 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.”
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.”
Richardson receives regulatory clearance for Glencore deal
WINNIPEG, MANITOBA, CANADA — Richardson
International Limited announced on Dec. 21 that it has received
conﬁrmation from the Competition Bureau that it may proceed
to close its transaction with Glencore. Richardson has now
received all regulatory approvals required to proceed with the
transaction and will be working with Glencore to close the
transaction as soon as possible in 2013.
Last March, Richardson announced that it had reached an
agreement with Glencore to acquire in excess of C$800 million worth of Viterra assets, including grain handling, crop
input and processing assets and related working capital, following Glencore’s successful acquisition of Viterra.
Richardson will be acquiring 19 country elevators and the
crop input centers co-located with those elevators, which
complement the Richardson Pioneer network of grain elevators and crop input centers across Western Canada.
Richardson’s agreement with Glencore included the purchase
of a 25% ownership interest in Cascadia Terminal in Vancouver
and the acquisition of a Viterra terminal in Thunder Bay. Richardson is also purchasing the Can-Oat Milling business with oat
processing plants in Portage la Prairie, Manitoba; Martensville,
Saskatchwan; and Barrhead, Alberta, and 21st Century Grain
Processing, which has an oat processing plant in South Sioux
City, Nebraska, U.S., and a wheat mill in Dawn, Texas, U.S.
January 2013 / World Grain / www.World-Grain.com

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World Grain - January 2013

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