GrainCorp has recommended that shareholders accept the most recent takeover offer by Archer Daniels Midland (ADM). This follows the addition of a special dividend.
As AFP reports, GrainCorp shareholders will receive $12.20 per share, with a further $1 per share to be paid in dividends.
Back in October, ADM was knocked back by GrainCorp after it offered $11.75 per share. Then it increased its offer to $12.20 and was again rejected.
But, as GrainCorp Chairman Don Taylor said, the addition of the $1 dividend per share made the deal acceptable.
"The GrainCorp board believes the ADM offer highlights the strategic value of our business and unique assets, the programme of strategic initiatives being undertaken and GrainCorp's enviable proximity to the fast growing Asian markets," he said.
"GrainCorp will work with ADM to ensure that ADM's confirmatory due diligence requirements can be satisfied, following which a takeover offer would be made on the terms agreed."
ADM has signed a takeover bid implementation deed and now has a week to complete due diligence.
ADM’s chief executive Patricia Woertz said in a statement, “We are pleased to have reached agreement with GrainCorp to conduct due diligence and, subject to that due diligence, put a recommended offer before GrainCorp’s shareholders.”
She said that ADM and GrainCorp have complementary geographies with little overlap and that the two organisations are culturally compatible.
‘‘The addition of GrainCorp to our global network would fit our strategy and help to further connect Australia’s growers with growing global demand for crops and food, particularly in Asia and the Middle East,’’ Woertz said.