ADM Bids For Australia's GrainCorp In $2.77B Deal
NEW YORK (AP) — Archer Daniels Midland Co. has offered to buy Australian grain handler GrainCorp for about $2.77 billion.
GrainCorp says it is considering the non-binding offer, which values it at 11.75 Australian dollars ($12.13) per share. That comes to 2.68 billion Australian dollars, based on the company's 228.2 million shares outstanding according to FactSet. ADM already owns 14.9 percent of GrainCorp.
Shares of GrainCorp rose 39 percent in Australia Monday to close at 12.30 Australian dollars after it disclosed the bid from ADM. The closing price suggests that traders expect a higher bid.
ADM, an agribusiness conglomerate, says it looks forward to continuing to discuss the deal with GrainCorp. The Decatur, Illinois, company's shares are down 28 cents, or 1 percent, to $28.24 in late morning trading Monday.