ADM, GrainCorp Sign Takeover Bid Implementation Deed

SYDNEY, AustraliaOn April 26, Archer Daniels Midland Company signed a takeover bid implementation deed with GrainCorp Limited and began due diligence on GrainCorp. ADM has agreed to make a cash offer of $3.5 billion (A$3.4 billion). Under terms of the deal, shareholders will receive a cash payment of $12.20 per share, plus a dividend of $1 per share.

We are pleased to have reached agreement with GrainCorp to conduct due diligence and, subject to that due diligence, put a recommended offer before GrainCorps shareholders," ADM Chairman and CEO Patricia Woertz said. We anticipate that the offer will be cash accretive in the first full year and will meet our key financial objectives.

GrainCorp is a leader in the Australian agribusiness sector. Should the offer proceed, the addition of GrainCorp to ADMs global network would fit its strategy and help to further connect Australias growers with growing global demand for crops and food, particularly in Asia and the Middle East. ADM and GrainCorp have complementary geographies with little overlap and highly compatible cultures.

Should the potential offer proceed, ADM would announce a takeover bid to GrainCorp shareholders. GrainCorp has advised that such an offer would be unanimously recommended by the GrainCorp board, subject to there being no superior proposal, an independent expert confirming that the offer is fair and reasonable, and the regulatory conditions for the acquisition being satisfied or waived by Dec. 31, 2013.