GrainCorp bid un­sure

Countryman - - NEWS -

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.

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