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Graincorp Limited (ASX:GNC) is again the target of a potential takeover bid by Archer Daniels Midland Company, with the companies signing a takeover bid implementation deed.
Archer Daniels says it’s begun due dilligence on GrainCorp, and subject to satisfactory completion of the process, its board would unanimously recommend the takeover bid.
If the bid proceeds, ADM will pay $12.20 per GrainCorp share in cash, plus an additional $1 dividend.
ADM chairman and chief executive officer Patricia Woertz said the group was pleased to have reached agreement with GrainCorp to conduct due diligence and, subject to that due diligence, put a recommended offer before GrainCorp's shareholders.
Under the deed, ADM will be granted a seven day period in which to conduct due dilligence.
Graincorp generated a net profit of $204.9 million for its 2012 fiscal year.
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