GrainCorp (ASX: GNC) has received an indicative, non-binding proposal from Archer Daniel Midlands (NYSE: ADM) at $11.75 per share in cash, subject to a number of conditions including due diligence, exclusivity and approval by the ADM board.
The offer is a 33% premium to GrainCorp's last traded price before the trading halt was granted last Friday. The offer values the company at around A$2.65 billion.
ADM has also advised GrainCorp that it has acquired a 14.9% economic interest through equity derivative contracts.
The GrainCorp board is reviewing the proposal and has not yet formed a view on its merits and will keep the market informed of any material developments - with Credit Suisse and Greenhill appointed as financial advisers.
About Archer Daniel Midlands
Archer Daniel Midlands produces food ingredients, animal feeds and feed ingredients, biofuels and other products to manufacturers around the world.
The company has a market cap. of over US$19 billion.