GrainCorp receives $2.4b takeover offer

GrainCorp receives $2.4b takeover offer

One of the country's largest agribusinesses GrainCorp (ASX: GNC) has been valued at a 42 per cent premium thanks to a takeover bid from Long-Term Asset Partners (LTAP), which is offering $10.42 per share.

The non-binding, indicative proposal from the Australian outfit values Sydney-based GrainCorp at $2.4 billion, and at the time of writing this morning shares had surged by almost a third.

The GrainCorp board has not yet formed a view on whether to recommend the proposal to shareholders or not, and has appointed Macquarie Capital as its financial adviser and Gilbert + Tobin as legal adviser.

The board said it would engage with LTAP in the context of an ongoing portfolio review to further assess the merits of the proposal.

"This evaluation is ongoing and the proposal is not yet sufficiently certain or in a form which would allow GrainCorp's Directors to make a recommendation to shareholders," the company said.

LTAP, whose directors are Tony Shepherd AO, Lance Hockridge, Andrea Staines and Chris Craddock, has indicated to the GrainCorp board that it does not intend to sell any of GrainCorp's assets should the proposal be supported by the board and shareholders. 

"Furthermore, the Board requires additional information on the identity of the equity investors underpinning the LTAP Proposal as well as the longer term financing plan and intentions for the business, to enable a detailed assessment of the impacts of the LTAP Proposal on all of GrainCorp's stakeholders including our shareholders, grower customers, trading partners and our people," GrainCorp said.

The proposal is subject to several conditions and also involves a "complex" financing structure with significant leverage comprising $3.2 billion in acquisition facilities from Goldman Sachs and $400 million from Westbourne Capital.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Business success comes from thinking inside the box for TAXIBOX founder
Partner Content
On a first glance, the world of storage solutions might not seem particularly exciting ...
TAXIBOX
Advertisement

Related Stories

Space beer, crops and embryos: Saber unveils plans for International Space Station mission

Space beer, crops and embryos: Saber unveils plans for International Space Station mission

Australian space engineering company Saber Astronautics has today u...

Will philosophy and ‘counterfactuals’ help us unlock the mysteries of AI?

Will philosophy and ‘counterfactuals’ help us unlock the mysteries of AI?

Artificial intelligence is increasingly being rolled out all around...

ACCC launches probe into misleading social media influencer posts

ACCC launches probe into misleading social media influencer posts

Australia's consumer watchdog is cracking down on social media ...

Takeover talks reignited between Tyro and Potentia Capital

Takeover talks reignited between Tyro and Potentia Capital

Talks of a potential takeover are back on between Sydney-based Tyro...