GrainCorp Limited’s (ASX:GNC) proposed suitor, US based Archer Daniels midland, has Issued a non binding proposal indicating it is prepared to acquire the outstanding shares in GrainCorp for $11.75 per share.
Archer Daniels currently owns just under 15 per cent of GrainCorp, and the US giant says the subsequent offer is still subject to due diligence, exclusivity and board approval.
Meanwhile the potential proposal has reportedly met some resistance from the Queensland Government.
Queensland Premier Campbell Newman told Fairfax media of his concerns surrounding an overseas company having an almost unfettered monopoly over Grains handling on Australia’s east coast.
Mr Newman says the takeover would mean that an offshore company would gain incredibly strong market power in terms of the storage and handling of grain.
Graincorp achieved a half year net profit of $133.7 Million to the end of March this year.
GNC Price at posting:
$8.85 Sentiment: None Disclosure: Held
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