Acquisitions

Archer Daniels Midland revises GrainCorp bid upward

New bid takes into account GrainCorp dividend

December 4, 2012

Archer Daniels Midland Company has revised its acquisition bid for the Australia-based GrainCorp Limited. The non-binding proposal would set the acquisition price at A$12.20 per share in cash, while allowing shareholders to keep a A$0.35 dividend announced Nov. 15. “We consider that our revised non-binding proposal reflects the value of GrainCorp’s business, taking into account GrainCorp’s 2012 results,” said ADM Chairman and CEO Patricia Woertz. “ADM is a disciplined buyer, and any combination with GrainCorp must meet our key financial hurdles, taking into consideration the impact of the Australian agricultural cycle on GrainCorp’s earnings power.” The most recent proposal represents an A$0.80 increase over the initial proposal of A$11.75, made Oct. 19.

Shane O’Halloran joined Food Engineering in November of 2012 as Digital/Online Editor. He graduated from Oberlin College in 2010, and worked as a copy editor and contributor to BleacherReport.com and ShesGameSports.com. He has also written feature articles on a freelance basis for publications in the western suburbs of Philadelphia. His areas of expertise include social media campaigns and website management. Shane produces daily news updates for www.foodengineeringmag.com and Food Engineering’s social media sites. In addition, Shane writes news articles for FE’s TechFlash e-newsletter and Food Engineering’s People and Industry section.