$2.4 billion bid for bulk grain giant
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.