$2.4 bil­lion bid for bulk grain gi­ant

Tasmanian Country - - NEWS -

BULK grain han­dler GrainCorp is con­sid­er­ing a takeover pro­posal worth an es­ti­mated $2.4 bil­lion from Long-Term As­set Partners.

The grain-han­dling gi­ant re­ceived a non-bind­ing pro­posal at the end of Novem­ber to ac­quire the com­pany.

How­ever, the GrainCorp board ex­pressed con­cern over long-term fi­nan­cial plan­ning of the busi­ness and the iden­tity of in­vestors pro­posal.

The bid val­ued GrainCorp stocks at $10.42, rep­re­sent­ing a pre­mium of 12.64 per cent to Tues­day’s price of $9.25.

LTAP chair­man Tony Shep­herd said the pro­posal would en­sure sta­ble de­vel­op­ment of GrainCorp and would guar­an­tee own­er­ship and control re­mained in Aus­tralian hands.

Mr Shep­herd said the LTAP un­der­pin­ning the pro­posal gace GrainCorp share­hold­ers the op­por­tu­nity to re­ceive an im­me­di­ate cash pay­ment at a hefty pre­mium.

“Our plans for GrainCorp’s as­sets are fo­cused on in­creas­ing vol­umes over time. There are many as­pects of our strat­egy for the com­pany’s fu­ture but in­creas­ing vol­umes is cen­tral,” Mr Shep­herd said.

On Mon­day, the GrainCorp board said the pro­posal was sub­ject to a num­ber of con­di­tions and in­volved a com­plex fi­nanc­ing struc­ture.

“There is no cer­tainty that the pro­posal will re­sult in a bind­ing pro­posal . . . what the terms of any such pro­posal would be, or whether it will be rec­om­mended by the GrainCorp board,” it said. The board said it had not formed a view on whether to ac­cept the of­fer.

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