News: GNC Graincorp To Demerge Its Global Malting Business

April 4 (Reuters) - Graincorp Ltd (GNC) :

• ANNOUNCED ITS INTENTION TO DEMERGE ITS GLOBAL MALTING BUSINESS
• PROPOSED DEMERGER WOULD RESULT IN TWO INDEPENDENT ASX-LISTED COMPANIES
• GRAINS AND OILS BUSINESSES WILL BE COMBINED INTO AN INTEGRATED GRAINS AND EDIBLE OILS BUSINESS
• THE TWO INDEPENDENT ASX-LISTED COMPANIES WOULD BE MALTCO AND NEW GRAINCORP
• NEW GRAINCORP EVALUATING OPTIONS TO REDUCE CASH FLOW VOLATILITY, CONSIDERATION OF LONG-TERM GRAIN PRODUCTION DERIVATIVE INSTRUMENT
• EXPECTED THAT MALTCO WILL TARGET A DIVIDEND PAYOUT RATIO OF BETWEEN 60% - 80% OF UNDERLYING NPAT
• IF DEMERGER IMPLEMENTED, CO SHAREHOLDERS TO GET MALTCO SHARES IN PROPORTION OF SHAREHOLDING IN CO, WHILE RETAINING THEIR GRAINCORP SHARES
• AFTER DEMERGER, NEW GRAINCORP WILL TARGET MAINTAINING AN INVESTMENT GRADE CAPITAL STRUCTURE
• DEMERGER IS EXPECTED TO BE IMPLEMENTED BY END OF CY2019 THROUGH A SCHEME OF ARRANGEMENT
• ON DEMERGER, MARK PALMQUIST WILL BECOME MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER OF MALTCO
• MARK PALMQUIST WILL REMAIN CHIEF EXECUTIVE OFFICER OF GRAINCORP UNTIL COMPLETION OF DEMERGER
• NEW GRAINCORP'S FUTURE STAY-IN-BUSINESS CAPITAL EXPENDITURE EXPECTED TO BE ABOUT $35 MILLION-$45 MILLION PER ANNUM IN A NORMAL SEASON
• KLAUS PAMMINGER WILL SUCCEED PALMQUIST AS MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER OF NEW GRAINCORP
• MARK PALMQUIST WILL BECOME MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER OF MALTCO
• GRAINCORP CONTINUES TO ENGAGE ACTIVELY WITH PARTIES WHO HAVE EXPRESSED AN INTEREST IN ACQUIRING PART OR PARTS OF GRAINCORP PORTFOLIO

Source text: (http//bit.ly/2UstBq3)

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