Archer Daniels Midland Co. has stated that it has entered into an underwriting agreement to sell its 19.9% ownership stake in GrainCorp Ltd. The total value is expected to be about AUS$387 million.
“As part of our ongoing portfolio management, we carefully considered our equity investment position in GrainCorp and determined that we could better meet our long-term returns objectives by reallocating that capital,” said ADM Chairman and CEO, Juan Luciano. “This transaction will allow us to further reduce our invested capital, and it will provide cash that we can redeploy to higher-return investments as we continue to execute our balanced capital-allocation framework.”
The transaction has been executed by way of an underwritten sale to an underwriter. Under the terms of the agreement, ADM will sell all of its 19.9% investment in the issued capital in GrainCorp at a price of AUS$8.53 per share.
Read the article online at: https://www.drybulkmagazine.com/material-handling/08122016/adm-sells-graincorp-stake/