GRAINCORP has received a 2.7 billion takeover bid from Archer Daniels Midland, a 33 per cent premium to the last traded share price, as the US agriculture giant seeks to push ahead in the global race for grains trading power.
Graincorp, which halted trading in its shares on Friday in anticipation of the takeover offer, said this morning it was reviewing the $11.75 a share bid, which is subject to a number of conditions including exclusivity and due diligence.
Analysts have lifted valuations for GrainCorp to as much as $13.46 a share to reflect heightened corporate activity, according to The Australian Financial Review.
It is understood another large global agribusiness has taken a serious look at GrainCorp in the past two months, but assessed a deal as being too expensive.
Above average crop production has underpinned record profits for GrainCorp in the past two years. It benefits from higher storage, handling and export fees.
It is understood the GrainCorp board would not entertain offers less than $13 a share.
Archer Daniels declined to comment but in the weekend statement, Ms Woertz said the bidder anticipated an acquisition of GrainCorp would meet the New York-listed group’s “financial hurdles”.
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