GrainCorp bid unsure
GrainCorp says it is providing suitor Long-Term Asset Partners due diligence to put forward a more certain proposal than the $2.38 billion allcash takeover deal it has on the table.
The country’s biggest listed bulkgrain handler last month received a buyout proposal from LTAP for $10.42 a share.
“LTAP proposal at this stage is not sufficiently certain or in a form which would allow the board to make a recommendation to shareholders,” GrainCorp chairman Graham Bradley wrote in a letter to the shareholders.
“At this stage, there is no certainty that our engagement with LTAP will result in a binding proposal for GrainCorp, what the terms of any such proposal would be, or whether it would be recommended by the GrainCorp Board.”
Mr Bradley said the LTAP proposal was just one of several potential strategic initiatives under evaluation as part of the company’s ongoing review of its assets.
In 2013, the Federal government bowed to grower pressure and blocked a proposed $2.8 billion takeover of GrainCorp by US agri-giant Archer Daniels Midland Co.