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Graincorp Limited (ASX:GNC) has officially recommended Archer Daniels Midland’s $3.4 billion takeover bid to shareholders after the proposal cleared due diligence.
Graincorp says due diligence for the bid has been completed and ADM is accordingly required to make a takeover offer under the deal terms.
It comes after ADM said it would allow Graincorp to pay a $1-per-share special dividend in exchange for a recommendation to shareholders to accept the bid.
The sweetener lifted the bid price from $12.20 to $13.20 a share.
ADM’s bid is still subject to a condition that it win approval from 50.1 per cent of the company’s investors.
The deal also needs approval from the Foreign Investment Review Board as well as Chinese authorities.
Graincorp generated a net profit of $204.9 million for its 2012 fiscal year.
(20min delay)